NU Online News Service, Jan. 23, 5:29 p.m. – Stock indexes have outperformed comparable actively managed mutual funds during the 2000-2002 bear market, according to Standard & Poor’s, New York.

Conventional wisdom suggests that active managers should do better than the stock indexes when the stock market is down.

Last year capped the worst three-year market run since 1941. During that period, only 46% of the actively managed large-cap stock funds beat the S&P 500 benchmark, S&P says.

Only 23% of mid-cap managers beat the S&P MidCap 400, and only 28% of small-cap managers beat the S&P SmallCap 600, S&P says.

But S&P, which works with Barra Inc., Berkeley, Calif., to compile the fund data, says more than 60% of large-cap and small-cap value managers beat the indexes.

Value managers typically invest in companies with strong cash flow, dividend growth and equity income.