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Share-price disasters herald a bright future for active managers

If bad companies are being properly punished again, stock-pickers have a chance to prove their worth by avoiding them

Stop losses: avoiding share-price disasters is where active fund managers should come into their own
Stop losses: avoiding share-price disasters is where active fund managers should come into their own Photo: iStockphoto

It's been a bad week for some listed companies, with advertising giant WPP, retailer Dixons Carphone and the sub-prime lender Provident Financial all suffering steep falls in their share prices after publishing poor results.

But what's bad news for them (and Neil Woodford) is good news for the market overall, and particularly good news for active fund managers in general.

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