Compare holdings against the benchmark before paying active fees.

Family Office Private Wealth Journal · Editorial research desk · 2 November 2026

Companion to How Active Is Your Fund Manager? A New Measure That Predicts Performance by K. J. Martijn Cremers; Antti Petajisto.

Decision in practice

A concentrated portfolio scores highly on active share. That establishes difference from an index, not that the differences are well chosen.

Committee assignment

Inspect the largest active weights, position liquidity and the economic thesis for each. Compare the risk budget consumed with the fee being charged.

Record and decision rule

Document active bets and their exit conditions. Do not approve a fee increase on active share alone.

Illustrative application by the editorial desk. The source authors did not evaluate or endorse this procedure.