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Posts Tagged ‘active share’


Active Share: The truth about core-satellite investing

In this post, we continue the active share1 conversation by tackling core-satellite investing. We also address the misperception that limiting active management to a small portion of the portfolio is an efficient way of achieving high active share and capturing excess returns with low fees. Jon: Leola, will you start by defining core-satellite? Leola: The

July 28, 2016 Categories: Investment

The value of low active share managers

In our previous blogs we have argued that active share1, though a useful measure, is not the silver bullet many believe it to be. Active share; (a) is different from a measure of manager skill and (b) does not translate well to multi-manager investing. In our last conversation, we also pointed out that positive excess

May 19, 2016 Categories: Investment

Active share and multi-manager funds: The labradoodle effect

Labradoodles combine the friendly temperament of the Labrador retriever with the dander-free hair of a poodle—a win-win for dog-lovers who have allergies! Russell Investments sees multi-manager investing in a similar way. By combining skilled, often concentrated, managers, it is possible to capture the benefit of excess returns while reducing deviations from market returns that cause

May 13, 2016 Categories: Investment

Understanding active share: Dispelling misconceptions

  Years after active share was “introduced” in 2006 and became the latest easy metric for identifying better managers, we recently saw the inevitable reversal in a recent FundFire article: Active Share Bubble has Burst. Whether active share is still latest fad or starting to wane in popularity, at Russell Investments, we continue to use

Dec 14, 2015 Categories: Investment

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