The war on active management continues with U.S. equity beta trouncing most strategies YTD.
This morning, Lipper is reporting another -$4B in outflows from U.S. equity mutual funds while passive equity funds took in another +$4.3B WoW. We’ve written extensively about the upside capitulation we’re seeing in the SPX futures and options data and via the reversal in style factor performance – which itself reeks of a massive career-risk driven chase.
With high beta stocks up +19% and Utes down -30bps since the June 27th Brexit v-bottom, we’re again starting to see opportunity on the long side of lower-for-longer strategies for those investors who’ve missed the big move.
Take a look at the style factor breakdown below:
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***Editor's Note: The snippet above is from a note written by our Macro team and sent to subscribers this morning. Click here to learn more.
