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Higher interest rates are helping active managers to (finally) outperform

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Rupert Hargreaves
Published on
Updated on
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active managers are outperforming “robustly” on rising interest rates, that’s according to Deutsche’s Bank’s October 7 Investor Positioning And Flows Report.

Active managers: Profit from higher rates 

According to the report, actively managed equity mutual funds have outperformed the S&P 500 by 1.5 percentage points since the July low in the 10-year yield, the best stretch of outperformance since February 2015. At no other period was the trend more apparent than last week when equity mutual funds outperformed the S&P 500 by 50 basis points as rates pushed higher.

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha