SUMMARY OF RESULTS
• One key measure of successful active management lies in the ability of a manager or a strategy to outperform their peers repeatedly. Consistent success is the one way to differentiate a manager’s luck from skill.
• The S&P Persistence Scorecard shows that few funds consistently outperformed their peers; 11.4% of domestic equity funds remained a top-quartile fund over the three-year period ending March 2019.
• Smaller-cap equity funds recorded better performance persistence compared with results from six months prior; 23.3% (versus 7.7%) and 13.7% (versus 4.0%) of small- and mid-cap funds, respectively, remained in the top quartile during the three-year period ending March 2019.
• The ability of top-performing funds to maintain their status typically fell over longer horizons. For example, zero large-, mid-, or multi-cap funds maintained their top-quartile status at the end of the five-year measurement period.