Article: Active U.S. Mid Cap Managers Outperform in Q3 

Brendan Cooper | October 25, 2022

Q3 2022 Manager Research: U.S. Equity Performance Trends

Investment Metrics’ Q3 2022 Manager Research found that active U.S. equity managers outperformed their benchmarks in September, but only mid cap managers outperformed for the quarter.  

In this report, we spotlight active U.S. equity manager’s performance as of September 30th 2022, based off the 10th business day preliminary data of IM Peer Groups.   

Summary of Active Equity Manager Performance

  • All active U.S. equity managers, by capitalization peer groups, outperformed their benchmarks at a median level in September, led by Smid and Small Cap.  
  • Active U.S. Mid Cap managers delivered the best relative performance for quarter, outperforming by 26 basis points.  
  • Active U.S. Smid & Small Cap managers struggled during the quarter, underperforming by roughly 80 basis points. 

Active U.S Equity Median Performance by Capitalization

Figure 1: U.S. equity median excess returns, periods ending September 2022. 

The median active U.S. mid cap equity product added 26 basis points over the Russell Midcap index for the quarter (Figure 1). Fundamental, Growth products (Figure 2) made up the vast majority of the top quartile performers for the peer group during the quarter. On average, those products contained 66 holdings with an active share over 82. 

Figure 2: U.S. Mid Cap equity top quartile performing products characteristics Q3 2022. 
Figure 3: U.S. Mid Cap equity top quartile performing products Style Skyline Q3 2022

Interestingly, there were some noticeable differences comparing the Style Skyline of the top quartile products (Figure 3) to our findings in the recent monthly U.S. Mid Cap Top Half Analysis Factor Performance Report. While growth and quality factors such as sales growth and earnings growth stability drove markets, three growth factors drove top performers: Earnings Growth, Sales Growth, and Forecast Growth. 

About Manager Research 

The Manager Research is a comprehensive, easy-to-use analytical tool for evaluating asset managers and analyzing investment performance. It simplifies investment research and analysis with instant access to a powerhouse of decision-support information on institutional and retail investments.   


The material presented in this document is an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or any issuer or security or similar. 

This document contains general information only, does not consider an individual’s financial circumstances and should not be relied upon for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should always be given to consult a Financial Advisor before making an investment decision.  

Investment Metrics does not provide investment advice and nothing in this document should be considered any form of advice. 

Investment Metrics accepts no liability whatsoever for any information provided or inferred in this document. 


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