Many pro money managers are having a tough time this year.
Both hedge funds and mutual funds have lagged the S&P 500’s strong gains in 2023, according to Goldman Sachs. The bank estimates the average large-cap core mutual fund has returned 7%, while the S&P 500 is up 11%.
Goldman Sachs estimates that only 30% of large-cap funds are beating their benchmarks. It attributed some mutual funds’ underperformance to their relatively smaller positions in stocks like Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia and Meta.