Though some have argued that stocks are so related to world events that they move up or down with them, making stock picking talent irrelevant, InvestmentNews' Jason Kephart points out that a couple hundred stocks move significantly higher or lower than the S&P 500.

That gives stock pickers an opportunity to show off their skills. Kephart says that every year since 2008, more than half of the stocks move 10 percentage points higher or lower than the index, giving PMs at least 250 stocks to overweight or underweight in a year. This year through August 19, 262 companies fall into this category, Kephart reports.

Though most stocks give PMs an opportunity to outperform the index in some way, 56 percent of 287 large-cap-core mutual funds have trailed this year, Kephart writes. It isn't correlation that is the problem, Kephart asserts, it is a fear to make big bets, management fees and trading costs, and the difficulty of beating the market.

To read more, click here.  

Edited by: Casey Quinlan


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