In 2021, mutual funds will enter the spring

    Recently, in a note from Bank of America analyst states that 58% of large-cap active funds outperformed the Russell 1000 in the first quarter, compared with the historical average of 44%. For core mutual funds that also hold growth and value stocks, 62% outperformed, the highest period since 2001 and the third-best quarter since 1991.

    Thanks in part to increased holdings in industrials, financials and raw materials stocks. Fund managers focused on mid-cap and large-cap strategies did particularly well, with 56% of large-cap growth funds outperforming their benchmarks, helped by a pullback in big tech companies.

    While proponents of active management want to attribute first quarter’s performance to nimble stock picking, it's more accurate to attribute it to the broader market. The first three months of 2021 are full of opportunities for anyone trying to outperform a market.

    After more than a decade of futile hustle and bustle, active mutual fund managers have a once-in-a-lifetime opportunity to head into spring in 2021.