Fidelity: 60% closet tracker threshold 'too stringent'
According to recent research paper
Fidelity's paper found that smaller, more concentrated portfolios have a greater chance of achieving high active share than larger portfolios
The 60% active share "rule-of-thumb" used to define so-called closet trackers may be too stringent, research from Fidelity's systematic equity team suggests.
Since a 2009 paper from Martijn Cremers and Antti Petajisto, "active share" has come to be used to quantify active management, measuring the difference between a fund's holdings and its benchmark's constituents....
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