STOCK-PICKING fund managers are testing their investors' patience with some of the worst investment returns in decades.
With bad bets on financial shares, missed opportunities in technology stocks and too much cash on the sidelines, roughly 85 per cent of active large-cap stock funds have lagged their benchmark indexes through Nov 25 this year, according to an analysis by Lipper, a Thomson Reuters research unit.
It is probably their worst comparative showing in 30 years, Lipper said.
Some long-term advocates of active management may be turned off by the results, especially considering the funds' higher fees. Through Oct 31, index stock funds and exchange traded funds (ETFs) have pulled in...