Actively managed funds beat the index in the third quarter
The period of unconditional dominance of passive indices gave way to a phase of dispersion of individual issuers.More than 54% of actively managed mutual funds beat their benchmarks last quarter.
Where was the alpha earned:
- Stock Picking in Traditional Industry: Investments in energy, infrastructure companies and regional banks generated excess returns.
- Hedging revaluation risks: Funds reduced shares of companies with EV/Sales multiples above 20x.
- Commission control: Reducing average management fees to 0.55% has made active strategies more competitive.
The Revival of Fundamental Analysis
“When the value of money ceases to be zero, market enthusiasm gives way to strict free cash flow (FCF) discipline.In these conditions, professional managers gain a real advantage,” comments the investment committee of The Carry Report.