Funds (Finally) Outperform Thanks To Massive Allocation To FANG

What has been the impetus for a host of active mutual fund outperformance against the S&P 500 benchmark in early 2017? Exposure to the Information Technology sector, a May 26 Goldman Sachs report observes. But with this recent outperformance in the rear view mirror, fund managers are reducing exposure to the sector that delivered the mutual fund outperformance, bringing their exposure closer to beta. [klarman] Mutual fund outperformance: IT sector making fund managers look brilliant, but they back away from exposure Lately, it might seem like rooting for hedge funds to outperform their benchmarks was rather an experience like rooting for the…