At the Money: Building A Concentrated Portfolio
Masters in Business
High Active Share in Concentrated Portfolios
To make a concentrated portfolio stand out from the index, it's essential to have an active share between 80 and 90%. Managers can achieve this by owning stocks from the benchmark but not many, or by including stocks not in the index. A high active share allows for a clear assessment of a manager's performance and tends to outperform lower active share portfolios over time.
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