Goldman says these stocks have produced the best risk-adjusted returns for mutual funds

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

United States News News

United States United States Latest News,United States United States Headlines

Mutual fund managers have been able to generate alpha outside of Big Tech stocks this year, and some stocks have contributed sizeable gains.

Mutual fund managers have been able to generate alpha outside of Big Tech this year, with some stocks contributing sizeable gains, according to Goldman Sachs. The Wall Street bank analyzed the quarter-end positioning of 528 mutual funds with a combined $2.8 trillion in equity assets. Goldman found that large-cap core have struggled this year due to their underweight in the largest tech stocks, which have led the market rally.

"Alpha generation elsewhere in the portfolio was aided by high return dispersion, falling stock correlation and a widening of market breadth in recent months." Alpha refers to the excess returns of a fund relative to its benchmark — on a risk-adjusted basis. The portfolio of the average large-cap mutual fund — which consists of the average positions across large-cap core, growth and value funds — has lagged the Russell 1000 by 136 basis points so far this year, Goldman said.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Big 12′s Brett Yormark: Joey McGuire, Texas Tech ‘better take care of business’ vs. UTWhile speaking at a Texas Tech Red Raider Club event, Big 12 commissioner Brett Yormark told coach Joey McGuire he 'better take care of business' against the...
Source: dallasnews - 🏆 18. / 71 Read more »