Big stock-pickers are beating benchmarks to a degree not seen since 2007 - and a broadening market could mean even better odds ahead

• Driven by tech momentum, 64% of active funds outperformed benchmarks last quarter, marking the strongest quarter since 2007.

• Growth funds led with 61% outperforming, driven by reduced holdings in underperforming Apple and Tesla during the first quarter.

• BofA sees better odds for active managers to pick winners as stock market leadership broadens.

The stock market's stellar performance in 2024 has catapulted big-stock mutual funds to hit a record-high rate not seen in 17 years.

64% of active funds triumphed over benchmarks in the past three months, thanks to the robust equity momentum driven by tech stocks. It marks their best quarterly return since 2007, far surpassing the 33% hit rate in the first quarter of 2023, Bank of America's strategists led by Savita Subramanian said in a note on Thursday.

Zooming in, January drove the quarterly outperformance, with 73% of funds beating their benchmark, compared to 54% in February and 53% in March.