FYI: The SPIVA U.S. Scorecard results are out and as is usually the case, active managers had a difficult time keeping up with their respective benchmarks.
Before we examine some of the results, it’s worth mentioning that SPIVA accounts for the entire opportunity set, which eliminates survivorship bias. Being that 23% of domestic equity funds were merged or liquidated over the last five years, this is something worth pointing out.
Over the last year, 65.34% of large-cap managers underperformed their benchmark. As the period increases, the odds of victory become even less likely. During the previous five and ten years, 80.8% and 79.59% have failed to beat their benchmark.
Regards,
Ted
https://theirrelevantinvestor.wordpress.com/2015/09/16/too-many-maybes/
