Why Active Managers Are Struggling as S&P 500 Correlations Soar?

As macroeconomic worries dominate market sentiment, stock dispersion falters — and so do the returns of active large-cap managers.

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In the ever-shifting landscape of financial markets, where unpredictability often reigns supreme, a new challenge has emerged for stock pickers in the US. Global trade concerns, particularly the specter of tariffs, are driving unprecedented levels of correlation among US equities, stifling the individual stock movements that active fund managers rely on to outperform the market.