Infographic 02 · The Diagnosis

The alpha problem

A shelf of third-party funds tracks the composite of products that mostly fail to beat the market. The longer the horizon, the worse it gets.

GenTwo Research
Ch. 01 — Diagnosis
Share of active equity funds that lag their benchmark
1 yearUS large-cap vs. S&P 500, 2023
60%
5 yearsUS stock fund managers (SPIVA)
95%
15 yearsVirtually no category consistently wins
~100%
Why it matters
53%
of retail clients say underperformance is the #1 reason they would leave a firm
60%
of institutional clients say the same
“You’re outsourcing alpha generation to managers who themselves might not deliver.”