Why Active Funds Are Underperforming

The video discusses the challenges faced by active fund managers, who are underperforming compared to passive index funds. It highlights that 75% of active managers are trailing their benchmarks, with only 18% outperforming, marking the lowest hit rate in a decade. Factors such as the Federal Reserve's liquidity injections have tightened correlations, reducing the impact of fundamental business differences. Additionally, unexpected market trends, like stable interest rates, have affected investment strategies.

What conclusion did the reports come to regarding active fund managers' performance this year?

What percentage of active fund managers are trailing their benchmarks this year?

What factors are contributing to the low hit rate of active fund managers?

How has the Federal Reserve's actions impacted market correlations?

What unexpected market behavior occurred this year regarding interest rates and utility stocks?