Heightened volatility wasn’t bad for everybody. Bigger market swings allowed stock pickers who diverged from the crowd to make a comeback. About 55% of actively managed large-cap mutual funds were on pace to beat their benchmarks this year, the highest share since 2007, according to a Goldman Sachs analysis going through mid-November. Hedge funds that deployed strategies to take advantage of volatility also came out on top.
Another group that was richly rewarded: those who correctly timed the big rally in commodities.