ROBERT D'Alelio has the kind of long-term record every mutual fund manager aspires to, beating 98 per cent of his peers over the past 15 years with the US$12.6 billion Neuberger Berman Genesis Fund and crushing his benchmark, the Russell 2000 Index.
Mr D'Alelio's performance over the past five years isn't so enviable. He's fallen behind his yardstick, and he's got lots of company. Stock pickers including Donald Yacktman at the AMG Yacktman Fund and the team of O Mason Hawkins and G Staley Cates at the Longleaf Partners Fund trailed their barometers in the same period after dominating in the prior decade.
Managers say they haven't changed, the market has. The easy money climate of near-zero...