Equity Managers End Year Positively


    The year ended on a positive note for large cap Canadian equity investment managers with 76 per cent outperforming the S&P/TSX Composite Index’s return in the fourth quarter of 2011 – the highest outperformance since the second quarter of 2004, says the ‘Russell Active Manager Report.’ That compares to only 40 per cent who beat the benchmark in the third quarter. The median large cap manager return was 4.7 per cent in the fourth quarter compared to the S&P/TSX Composite’s return of 3.6 per cent, the largest outperformance in three years. “The focus came back to fundamentals, with many of the companies that were beat up in the third quarter rebounding strongly in the fourth, primarily in the month of October,” says Kathleen Wylie, senior research analyst. “The market seemed to recognize that good companies, with good management, trading at reasonable valuations, should be rewarded.”