Concentrated funds - are they too active and risky?

2011 Conference - Due Diligence Forum |  SG Hiscock / EQT |  26 August 2011

This Due Diligence Forum Research Paper, presented at the 2011 PortfolioConstruction Forum Conference, looks at how to define a concentrated fund, and how to identify whether it is really active or not and thus justifies its active management fee. It shows that concentrated funds with higher active shares outperform their more broadly diversified counterparts, discusses how to assess the inherent riskiness of a fund, and examines whether volatility is bad and why the focu...