As of Dec. 31, 2005 the scorecard shows that 15.5% of large-cap funds, 10.2% of mid-cap funds and 9.8% of small-cap funds remained in the top-quartile ranking for a period of three consecutive years. Also, 32.2% of large-cap, 27.3% of mid-cap and 25.7% of small-cap funds consistently maintained a top half ranking.
"Very few funds managed to maintain a consistent top-quartile ranking for long periods of time," said Srikant Dash, index strategist at S&P. "Our study shows that over five consecutive years, only1.9% of large-cap funds, 3.1% of small-cap funds, and no mid-cap funds have managed to minimize or avoid losses during the bear market relative to their peers."
"When we viewed consecutive 12-month performance or non-overlapping cumulative periods, consistent top performers all had experienced management teams with tenure higher than their peers," said Rosanne Pane, a mutual fund strategist at S&P. "Experienced management teams can successfully maneuver their funds through a variety of market environments."
