April was a good month for large-cap stock pickers.
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Stock pickers in the largest part of the market are crushing it
Large-cap managers in April outperformed their benchmark indexes at the best rate since February 2015, Bank of America Merrill Lynch says.
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Large-cap managers outperformed their benchmark indexes at the best rate since February 2015, according to Bank of America Merrill Lynch. The managers, tasked with singling out individual stocks that can do better than the broader market, had a 63% outperformance rate, according to a note Tuesday by Savita Subramanian, an equity and quant strategist at BAML.
They also moved away from cyclical sectors that were expected to benefit if economic growth and inflation picked up after the election — the so-called reflation trade. Managers held the biggest underweight in the materials sector since 2010, and were the least exposed to the energy sector since before the US election.
Active managers also benefitted from S&P 500 stocks moving in very distinct directions.
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