While the Dow Jones Industrial Average soared 391.47 points on Tuesday and many investment banks' stocks rocketed in the mid-double digits on the good news of infusion of capital from shareholders, Lipper preliminary data on mutual fund results for the first quarter of the year was disappointing, The Wall Street Journal reports this morning.
Diversified U.S. equity funds, for instance, tumbled 10.1% on average in the quarter, and even global equity funds took an average hit of a 9.6% decline.
Even China's economy is beginning to show the signs of the much-needed strain; the Chinese government has been trying to quell the stratospheric rises in the markets there for more than a year.
But many mutual fund portfolio managers see great opportunities in the market's first-quarter decline, with much money pouring into small-cap funds.
Look for an article in this coming Monday, April 7 edition of Money Management Executive looking at market performance and fund flows in the first quarter, year-over-year and YTD.