Reflections on economic and social trends that impact investor sentiment and behavior.
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Dare to be Different
Legg Mason | February 26,2014

A brief look at the concept of active share – what it is, what it is not, and what it says about how a portfolio is managed

  • The higher a portfolio's active share, the more it differs from its benchmark
  • Active share doesn't predict success or failure, but it does reflect a portfolio manager's commitment to independence from a benchmark
  • In principle, the higher a portfolio's active share, the greater the possible range of performance outcomes