It's Hard to Argue for High-Active-Share Funds
Investors in highly differentiated funds have mostly endured higher risk while paying higher fees for mostly mediocre relative returns.
Investors in highly differentiated funds have mostly endured higher risk while paying higher fees for mostly mediocre relative returns.
A key selling point of many actively managed equity mutual funds is their promise to look starkly different from their benchmarks. Asset managers labeling funds "high-conviction," "best-ideas," "focused," or "opportunistic" put a positive spin on this difference and typically tout the supposed advantages of their investment approaches.