The average S&P 500 stock is up more than 10% since the close on February 11th. From the start of the year through February 11th, though, the average stock in the index fell more than 10%. Below we have broken up the S&P into deciles (10 groups of 50 stocks each) based on stock performance from the start of the year through February 11th. We then calculated the average performance of stocks in each decile since February 11th. As shown, the 50 stocks that did the worst during the market’s correction from January 1st through February 11th are up an average of 17.7% since then, while the 50 stocks that held up the best during the market’s correction are up an average of just 3.8%! Clearly this has been a “buy the losers” rally, and it helps show why active managers have such a tough time beating the market.