More than half (54%) of institutional equity managers outperformed the Standard & Poor's 500 Stock Index during the third quarter, compared with only 30% during the second quarter, according to the INDATA market report.
For the nine months ended Sept. 30, 46% of the 1,183 institutional equity portfolios in the INDATA universe - representing $286 billion in assets - outperformed the market.
However, for the same period last year, 68% of managers outperformed the market.
Equity cash reserves, meanwhile, held almost constant around 3.9% in the third quarter, compared with 4.1% in the second quarter.
W.T. Kennedy, an Atlanta pension consultant, said money managers were overweighted in technology stocks, which was the best-performing sector in the third quarter, and underweighted in utility issues, the worst-performing sector in the third quarter.