Debating Active Share as Fund Performance Predictor
July 30, 2015 - Investing Expertise, Mutual/Hedge Funds
“Measuring the Level and Persistence of Active Fund Management” (pro) and “Fund Activeness Predicts Performance?” (con) summarize debate on the ability of Active Share, how much portfolio holdings differ from a benchmark index, to predict mutual fund performance. The authors of the con paper summarized in the latter (principals of AQR Capital Management) assert that “neither theory nor data… Keep Reading