A Review of Recent Mutual Fund Active Performance - July 2014

Jul 31, 2014

Actively managed large cap mutual funds have significantly underperformed their benchmarks from March 1 through April 30 this year, which has raised questions among investors since this happened during a flat stock market with volatility levels at historically low levels. In this paper, we demonstrate the significance of this recent performance, measure mutual fund tilts on investment styles and analyze the impact of these styles by calculating contributions of tilts to the performance of funds. We also compare the best- and worst-performing mutual funds and identify the key drivers of performance.