Active versus passive scorecard, emerging markets small cap funds are big active winners. Twice a year, Standard & Poor's releases a report comparing the performance of active managers versus three passive indexes. Gains in major indexes were not duplicated by the universe of actively-managed funds. S&P notes that 59.58% of large-cap funds, 68.88% of mid-cap funds and 64.27% of small-cap funds underperformed their respective benchmark indices over the trailing 12 months. Performance of active managers was equally unfavorable over three and five year periods. The one notable bright spot among active managers: Emerging markets small-cap funds. They have outperformed for a number of years. That suggests that managers can find Alpha by fishing in waters where there are fewer commercial vessels with trawling nets at work. (VIEW LINK)
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