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Investing.com -- Bank of America noted that large cap active funds matched their benchmarks in April, with about half outperforming, slightly better than the historical monthly average since 1991.
Despite a volatile market influenced by headlines and macroeconomic factors, which saw average stock correlations reach their highest point since 2022, 54% of large cap active funds have outperformed their Russell benchmarks year-to-date (YTD), improving from 36% in 2024.
In the large cap category, value funds stood out in April, ending a three-month streak of underperformance. Sixty-five percent of value funds outperformed, compared to 51% of growth funds and 45% of core funds. This success comes despite the Russell 1000 Value Index lagging behind the Russell 1000 Growth Index by nearly 5 percentage points.
However, value funds are still trailing for the year after a weak first quarter, with only 44% surpassing their benchmark, which is less than the YTD performance of growth and core funds.
Small and mid-cap (SMID) fund managers, on the other hand, did not fare as well in April. Only 35% of small cap funds and 17% of mid cap funds outperformed their respective Russell benchmarks. The underperformance was widespread, with small cap growth funds being the only SMID category to outperform, and even then, by a very narrow margin.
Regardless of the challenging month, 60% of small cap funds are outperforming YTD, a stark contrast to the 19% of mid cap funds achieving the same.
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