Active Share | Snippet Finance

A very comprehensive look at active share.
The bottom line: evidence suggests active share is not correlated to better performance. The reason:
- Active share means higher dispersion (bigger range of results).
- Higher fees.
- Positive skew (the more concentrated the lower chance of owning the few stocks that generate most of the returns).
Lots more in the discussion including a really excellent part on the role of luck vs. skill.
In many ways supports what Hosking Partners talk about and put in practice.