Sentences with phrase «closet indexers»

Active Share is also useful in identifying closet indexers — managers who claim to be active but whose portfolios are very similar to the benchmark portfolio.

As a result they gravitate towards index funds or becoming closet indexers by over diversifying.

Academics gave the term closet indexers to funds which, though actively managed, closely emulate their benchmarks.

It's the overlap between the fund and an index and can be used to determine closet indexers, although this metric is difficult to find.

A measure called «active share» tries to differentiate active managers from closet indexers.

Blackstein suggests SPIVA reports show such dismal results largely because so many managers who claim to be active are actually closet indexers, skewing the data.

There is going to be a shakeout with many closet indexers exiting the space.

In the industry, they're affectionately referred to as closet indexers or index huggers.

First of all, most closet indexers didn't start out that way.

Whatever the reasons or excuses, you can decide if you want to keep paying high fees for closet indexers who under perform.

Miller also has an intriguing theory about why investors have been abandoning active investments — he blames the Active fund managers are actually high - priced closet indexers.

Hanif Virji and Neil Purslow quoted on litigation finance for pension fund claims against European closet indexers.

Identifying closet indexers is extremely important because active management fees can be a significant hurdle to outperforming the index for anyone holding a portfolio similar to its benchmark.

That is why in this environment portfolio managers tend to become closet indexers.

In contrast to large - company funds that hold upwards of 50 stocks — which leads them to become «closet indexers,» matching the risk and return of the broad market — its funds hold about 30.

Bloated funds are also a factor, he says, arguing that the massive growth of funds has turned operators like John Paulson into little more than «macro tourists» and «closet indexers.»

Client Portfolio Manager Daniel Nicholas discusses how a more productive discussion is the value of true active managers versus closet indexers.

At Harris Associates, we believe «closet indexers» are primarily to blame for the average active manager underperformance.

We think a more productive discussion is the value of true active managers versus closet indexers.

Many actively managed funds are closet indexers.

The professors found that up to one - third of US mutual funds had low enough Active Share to be considered «closet indexers.»

That's a very different goal than closet indexers have.

Our beef is only with certain mutual funds that do nothing but mimic index funds (index - huggers or closet indexers) but charge 2 % premiums for the privilege.

@joelight @spbaines the paragraph that starts «To screen out such «closet indexers,» «is factually wrong, does not understand statistics Jan 15, 2013

An extremely overdiversified active fund manager is called a closet indexer: he or she holds a portfolio that closely resembles the benchmark, while charging fees that can be 20 times higher than an index fund.

The professors found that up to one - third of US mutual funds had low enough Active Share to be considered «closet indexers.»

If the active share of a fund is close to zero, then the fund is effectively a replica of the index, hence the term «closet indexer.»

At Harris Associates, we believe «closet indexers» are primarily to blame for the average active manager underperformance.

We think a more productive discussion is the value of true active managers versus closet indexers.

Some industry experts believe the fiduciary rule will help flush out «closet indexers.»

It wasn't from being a closet indexer.

A portfolio with an active share between 20 % and 60 % is considered a closet indexer.

Benchmarking enforces conformity on managers, and the shorter - term the horizon, the more it makes them closet indexers.

Find out if your manager is a closet indexer.

With investing partners investing in more securities is possible, but at some point so many stocks are owned that you inevitably become a «closet indexer.»

One of the saddest cases in investing happens when someone thinks they are active investor but the reality is that they have invested in so many stocks that they have become «closet indexers.»

Meanwhile, about a third of active managers are «closet indexers» anyway.

But now they are also the targets for the most popular investing strategies in the world, for both pure indexers and closet indexers.

And it is not only what is officially indexed that can be a problem, you also have what is unofficially indexed: the closet indexers, which represent an enormous pool of capital.

In Canada it's estimated that about 40 % of mutual funds are closet indexers.

Active share and closet Indexing are topics which seem to be getting more analytical attention, but closet indexers is not a strong definition or classification that we have yet incorporated into our research.

Unfortunately, closet indexers are not low cost.

Answer from Rick Ferri, Founder and Managing Partner of Portfolio Solutions: We did not attempt to define what a closet indexer was or separate those funds from other actively managed funds.

This is why most mutual and pension funds, many of which are «closet indexers» and manage too much money, can not consistently beat benchmarks.

At these ownership levels, Spier is not at risk of being a closet indexer and yet he still has a comfortable level of diversification.

Many broad funds are closet indexers, so you are just buying the market.

Overall, closet indexers are expected to top $ 1.3 trillion in... Read More