Stock Pickers Failed to Shine as the Market Tumbled Last Month

Only 42% of active large-cap mutual funds beat the benchmark
Value funds had a good month as growth funds fell with tech

Steven Major, global head of fixed income research at HSBC, says markets are shifting to "loss aversion."Markets: The Open." (Source: Bloomberg)

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By Charles Stein

November 1, 2018 at 12:59 PM EDT

This article is for subscribers only.

Stock pickers have been promising for years that once the equity market hit a rough patch, they would have a chance to prove their worth. Maybe not.

Stocks had their worst month in seven years in October and less than half, or 42 percent, of actively managed mutual funds that buy large-cap U.S. equities beat the S&P 500 Index, according to data compiled by Bloomberg.