Portfolio Management

775 Posts

Active Share Is a Fuzzy Number

Active share’s popularity has largely been driven by two factors. First, it appears simple and intuitive; active share is the proportion of a portfolio’s holdings that is different from the benchmark for that portfolio. Second, the investment industry has become fascinated by the debate over the link between the level of active share and outperformance of the benchmark. Read more

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The Behavioral Continuum: What’s the Best Behavioral Bias?

Much of the content on behavioral finance carries with it an unnecessary negative spin. Behavioral biases are cast as illogical and counterproductive, potentially even disastrous. And they can be. But behavioral patterns are also useful anchors for successful investment decision making. So we asked readers of CFA Institute Financial NewsBrief which behavioral bias was the most useful. Read more

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