Bestinvest's Spot the Dog finds 42% increase in underperforming funds from six-year low

Underperforming assets up to £19.1bn

The number of consistently poorly performing funds has increased 42% since August 2022, Bestinvest’s newest Spot the Dog report has found.

Overall, 44 funds were selected as "horrible hounds" in the biannual report compared to 31 named in the previous report, which now represent £19.1bn in assets, up from £10.7bn. The previous found a six year low in underperforming funds, as many repeat offender value funds had its performance boosted by the market's rotation into cyclical assets and were less hindered by still rising inflation and interest rates hikes. In the first 2023 edition, the study found that 70% of these underperforming assets were located in the six ‘Great Dane' funds, or portfolios over £1bn, double the numbe...