Investing
Battered Active Managers See Salvation in Churning Stock Market
- Top-heavy S&P 500 is easier to outperform if big tech stumbles
- Just 30.6% of S&P 500 stocks beat index in August: Leuthold
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After going half-insane watching a tiny cabal of technology megacaps rule stock indexes all year and make their benchmarks almost impossible to catch, active fund managers may be on the verge of liberation.
Positive vaccine news is fueling optimism that an economic reopening is no longer a pipe dream. That’s sparking a rotation into a much broader array of beaten-down companies, such as small-cap and value shares. With the S&P 500 no longer ruled by just five names, active investors may finally have found the kind of target-rich environment where their skills thrive.