It will be harder for advisers and money managers to outperform this year after a strong 2009, but there are still a few key areas of opportunity, Larry Adam, the chief investment strategist for Deutsche Bank Private Wealth Management, said during a conference call.

He said that last year fixed income mutual fund managers posted their best outperformance relative to the Lehman Aggregate Index since at least 2000, outperforming by 10% on average. If managers took any sort of credit risk, and invested in bonds with less than an A rating, they significantly outperformed, “but the risk trade is over,” Adam said. Small- and large-cap equity mutual funds also outperformed.

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