PT - JOURNAL ARTICLE AU - Harsh Parikh AU - Karen McQuiston AU - Sujian Zhi TI - The Impact of Market Conditions on Active Equity Management AID - 10.3905/jpm.2017.2017.1.076 DP - 2017 Dec 15 TA - The Journal of Portfolio Management PG - jpm.2017.1.076 4099 - https://pm-research.com/content/early/2018/01/08/jpm.2017.2017.1.076.short 4100 - https://pm-research.com/content/early/2018/01/08/jpm.2017.2017.1.076.full AB - Since the financial crisis, investors have enjoyed generally benign conditions, with subdued volatility and strong markets - but active equity managers have remained under pressure. Yet this should not be surprising; history has shown a strong pattern of counter-cyclicality in manager excess returns relative to the equity market. In this study, the authors take a close look at the relationship between equity market conditions (defined by market returns, volatility, and dispersion) and active equity manager results. Focusing on the US large cap space, they analyze over 20 years of manager and market data to determine which set of conditions are associated with more or less favorable results for active equity managers.