Three of the most celebrated stock-picking mutual fund managers are among the worst performers this year as their bets on a growing economy haven’t panned out, according to a report Monday.
Active mutual funds run by Bruce Berkowitz of Fairholme Capital Management, Kenneth Heebner of Capital Growth Management and Bill Miller of Legg Mason (NYSE: LM) are the three worst performers among large diversified U.S. mutual funds in 2011, according to Bloomberg.
The funds lost more than 10% through June 9, while the S&P 500 was up 3.4%, according to the report.
More investors frustrated with the underperformance of active managers have been turning to passive exchange traded funds that track indexes.