Stock pickers aiming to beat their benchmarks had another difficult go of it in 2024.
According to the latest data released by S&P Dow Jones Indices on Tuesday, 65% of large-cap equity managers underperformed in 2024, the highest percentage since 2021, when 85% of managers underperformed while the S&P 500 soared to a nearly 27% advance. By comparison, 60% underperformed in 2023.
The percentage of managers who outperformed was better in the small-cap space. There, only 30% of small-cap funds lagged the S&P 600, an index that tracks high-quality small-cap stocks. Last year ended up being another difficult year for the small-cap cohort.