FYI: Bouts of volatility tend to be favorable for active stock-picking funds, as it is usually the lowest quality stocks that get smashed open like a row of decorative gourds on Halloween night. Professional managers tend to have less exposure to junky stocks because they’ve all gone to the same business schools and have been educated with the same text books. And none of them have been taught to load up on low-quality companies, for obvious reasons.
And so, in a correction, it is not unusual to see the active funds pick up a few points vs the indices they track. But it’s a Pyrrhic victory because they still lose money. They just lose a bit less
Regards,
Ted
http://thereformedbroker.com/2015/09/02/a-pyrrhic-victory-for-active-stock-pickers/
