Gurus Are Crushing Financial Professionals

Aug 25, 2014   //   by Profitly   //   Profitly  //  Comments Off on Gurus Are Crushing Financial Professionals

Last week we showed you how much better our gurus were doing as opposed to the general markets. Now, we’re here to tell you that not only are they crushing the markets, they’re killing the competition too.

According to a post by Josh Brown of the Reformed Broker, only a quarter of funds are beating the market this year.

The Equity and Quant Strategy group at Bank of America Merrill Lynch updates us on the latest data about active manager performance. Year-to-date, it’s been very difficult for U.S. stock pickers. When benchmarked against the Russell 1000 large cap index, a shockingly small number of funds are above the bogey…

“Year to date, 25% of managers beat the

benchmark. Core managers did best, with

27% beating the benchmark. Value

manager had an 11% hit rate. 20% of

Growth managers beat the benchmark.”


For some perspective, 37% of managers have been able to beat the market over the last 12 months, so 25% is a really bad showing.

Savita Subramanian & Co do note that July was a good period for active managers, however, as 53% of managers got above their benchmark for the month. Is this the start of something new or just an anomaly during a very tough year?

Brown got this information via a note from Bank of America Merrill Lynch issued on August 8th 2014.

As I said earlier, we told you how awful the general market was doing this year in a post last week. We should note that the stock market did end the week on a high note, with the Dow rising 185 points, but the Dow is still down on the year and people following Superman are still far better off than the general traders. Superman just passed the million dollar mark in profits Year-To-Date! Think he can hit $1.25M in profits by the time he speaks at Tim’s conference in Vegas?

Screen Shot 2014-08-12 at 4.11.21 PM

Time will tell, but regardless, this guy is on fire no matter which way the market goes. A couple of weeks ago he had a $150k+ profit and last week he had several trades that he closed with profits in the 5 figures! To get a percentage placed on this, let’s estimate that he has a portfolio of roughly $2.5 million (since he has $2.38 million in all time profits on Profitly), that would be a return of roughly 40% year-to-date! That’s compared to a 4.5% return for the S&P500 and returns of roughly 4.7% for the average fund manager! Even if we are low balling the amount of money in his portfolio and cut the percentage return in half, you’re still beating the average return by 15%. I don’t know about you guys, but I would take Superman’s returns in a heart beat, especially since I could trade from anywhere in the world and wouldn’t have to sit in an office cubicle.