Active Managers Had Another Rough Year. Why 2024 Could Be Better.

Just 38% of large-cap active mutual funds outperformed their Russell benchmark in 2023, according to Bank of America. While these stockpickers did better in 2022, when 47% beat their benchmark, 2023’s 38% hit rate is still roughly in line with the historical average, BofA said in a research note. The only time in the past 20 years that a majority of active large-cap funds outperformed was in 2007, when 61% of funds beat the benchmark.