Sentences with phrase «high active share»

Funds with high active share do seem to create alpha.

The benchmark - beating results of high Active Share managers mentioned previously are an average of the group.

It would be wrong for investors to interpret the results in a manner leading them to conclude all managers with high Active Share portfolios will beat their benchmarks.

Studies show high active share may be a significant predictor of performance.

High active share indicates management which is providing a portfolio that is substantially different from, and independent of, the index.

Ultimately, we care little about growth / value styles and focus on market - beating returns with high active share, low tracking error, and low turnover.

But lesser - known stocks like Medicure and Absolute Software headline its portfolio, giving it the group's second highest active share of 90 %.

Early work suggested that high active share alone was sufficient to increase the probability of benchmark outperformance, but quickly this point of view came under attack, requiring additional refinement.

Cremers and Petajisto find significant persistence in high Active Share managers» abilities to continue to deliver excess returns relative to a benchmark index.

In his view, high active share means concentrated portfolios that can have high over-performance or high under - performance, but it does not reliably predict which.

This is an example of a strategy whose high active share does not necessarily result in a significant risk - adjusted outperformance.

Yet, Cremers and Petajisto found that the share of assets held in truly active funds (with sufficiently high Active Share) had fallen from 60 % in 1980 to under 20 % in 2009.

Professor Cremers has since gone on to update the study with the finding that long holding periods are nearly as important as high Active Share to securing investment outperformance.

To make a fairer comparison between active and passive, he concludes, you need to compare index strategies against managers with high active share scores.

I think that firms that are charging high active share prices but delivering something that really actually hugs the benchmark are going have a very difficult time.

«On the equity side, we take a sector - neutral approach that targets high active share, a measure of the percentage of holdings that differ from the index, which historically has offered greater potential for outperformance.»

He is often quoted regarding his expertise in high active share, concentrated portfolios.

Yet, Cremers and Petajisto found that the share of assets held in truly active funds (with sufficiently high Active Share) had fallen from 60 % in 1980 to under 20 % in 2009.

Professor Cremers has since gone on to update the study with the finding that long holding periods are nearly as important as high Active Share to securing investment outperformance.

Of course, it is likely a number of managers with high Active Share portfolios underperformed their benchmarks while others outperformed.

But truly active managers — those with high active share scores — have been proven to outperform the index over time, says Blackstein, citing Martijn Cremers and Antti Petajisto, the researchers who devised the active share metric.

The researchers conclude managers with high Active Share outperform their benchmark indexes and Active Share significantly predicts fund performance.

Turner: One of the things that people in the industry often talk about when it comes to money management is this barbell, where as you said you have low - cost, passive index tracking funds and at the other end you have higher fees, higher active share, things like private debt which you mentioned, and it's those in the middle that are charging higher fees for something that looks quite a lot like beta that are really going to struggle.

In contrast, high active share funds differ materially from their respective benchmarks.

One of the intriguing results of the initial research on active share was that high active share managers seemed more likely to outperform than low active share managers.

On whole the funds have high active share, long - tenured managers, are risk conscious, lower turnover and relatively low expense.

This process results in a benchmark agnostic, high active share, all - cap portfolio of 30 - 50 businesses which tends to behave differently from traditional Emerging Market indices.

The higher the active share, the lower its resemblance to the index and vice versa.

It is also worth noting that the high active share of the fund (over 90 %, according to the factsheet) is undoubtedly a result of a frequent equity hopping to sustain its high dividend.

Active Share determines the extent of active management being employed by fund managers: the higher the Active Share, the more likely a fund is to outperform the benchmark index.

Researchers in a 2006 Yale School of Management study determined that funds with a higher Active Share will tend to be more consistent in generating high returns against the benchmark indexes.

Active Share determines the extent of active management being employed by mutual fund managers: the higher the Active Share, the more likely a fund is to outperform the benchmark index.

A fund with a high active share means the fund's holdings are significantly different from the benchmark.

A high active share does not guarantee a superior performance of a fund on a truly risk - adjusted basis, as clearly demonstrated by this Alpholio ™ analysis.

However, choosing a fund with a high active share won't necessarily translate to better returns.

Bottom line: if you don't buy an index, you'll want to focus on strategies that have unique holdings and high active share.

This purposely distances us from relative benchmark portfolio management styles leading to high active share.»

As this paper on active share demonstrated, the group of funds with the most unique holdings (highest active share) has historically beat market - cap weighted indexes by 1.1 % after costs / fees.

Similarly, a high active share is cited as one of the reasons actively - managed funds will outperform their passive peers.

It remains to be seen whether a combination of the expected low stock correlations in the market and a high active share of these funds leads to their significant outperformance in 2017.

The combination of agnosticism about their benchmark, fundamental security selection that often identifies out - of - index names and their calls typically results in a high active share.

The Fund strives to outperform the S&P 500 index with a high active share.

In their 2007 study, Martijn Cremers and Antti Petajisto noted that «the best performers are concentrated stock pickers» and «we also find strong evidence for performance persistence for the funds with the highest active share.»