Manager of the VT Downing Fox Funds & Citywire Columnist. Blogs at Medium.com & nevermindthesilverbullets.com
It‘s rare that I’m this right (while wishing I was wrong): The St Vidia’s day predictive rhyme held true for May – the AI chipmaker beat expectations, and active managers were knocked off their feet. In the 30 days before, 59% of active funds were ahead of the global market. In the 30 days since, only 19% of them managed the same feat. Here’s the rhyme: ‘St Vidia’s day, if results do beat Active managers knocked off their feet St Vidia’s day, if thou doth fail, Index funds shall turn so pale.’ Posted as a reminder then, that the markets have gone a little batty. If the fortunes of one company (and investors’ reactions to it) dictate the fortunes of the large majority of active funds, then there’s more going on than just “higher charges = the average active fund underperforms”. Footnote: true to form, 30 days’ later the market has started to broaden out again, helped by NVIDIA’s steep correction over the last week or so (marking down c.$500bn of investors’ capital as it goes). The next St Vidia’s Day falls on 21st August. Place your bets… #activemanagement
Bonkers 🍿
Senior Investment Analyst at iSectors® LLC
2wpoetry and investing go together like peanut butter and jelly. i've been writing market haikus myself.