Transcript
The Magnificent 7
Matt
Eric, we're back, slightly delayed quarterly recap, but we're back in terms of bull markets. We had this short winter period in the past couple of years, but it was, again, very short cycle. The markets are humming again. The S&P was up another 4%. It's up 15% year-to-date, even more now since we're past the quarter. NASDAQ up 8% in the second quarter, up 18% for the year. So any type of bear correction, massive pullback just hasn't happened. Let's start off there, just immediate reaction to second quarter performance and just this incredible market strength that feels like it's been ongoing for north of a decade at this point.
Eric
Yes. It's probably driving every active manager nuts because not only is the returns impressive, the composition of the return specifically in the second quarter coming from these mega cap growth companies is hard because normally as an active manager, you're not just buying the top pieces of the index, you try to buy the names where other people don’t understand, you try to find value where other people aren't looking. And that's just not the case. It's been very hard to put up numbers on the equity markets against the active benchmarks.