Global markets are now basically flat for the year, and fund managers are underperforming their benchmarks as a whole for the first time since 2007, according to a report from Citi’s Robert Buckland
Long-short strategies are losing money as well. One reason? Even good stock pickers can’t make money.
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For example, the return an investor could generate by buying the best two sectors and selling the worst two is close the lowest we have seen in over a decade . Even amongst the regions the spread between the best and worst would have been close to decade lows if it wasn’t for the earthquake in Japan. The alpha opportunities have been limited.
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