and his team are on a mission to educate advisors and investors about Touchstone Investments'
] style of active management.
Last week the Cincinnati-based mutual fund shop unveiled
its "Your Active Share Partner" educational and marketing campaign
, all around the concept of active share. The phrase dates back to a 2006 study at the Yale School of Management by Antti Petijisto
(now a PM for BlackRock) and Martijn Cremers
. Cremers, now a finance professor at the University of Notre Dame, is teaming up with Touchstone on the campaign.
Cremers and Petijisto found that skilled stock pickers, with the opportunity to act on those picks and the conviction to stick with them, and with low turnover in their portfolios, can outperform. That translates into having a high active share, a high percentage of their portfolios differing from the allocations of their benchmark indexes. The concept, Graziano, still holds water, regardless of whether the PM is an all-cap, large cap, or small cap manager.
"We think that that's a very significant finding for the industry at large," Graziano tells MFWire
. "We only hire managers that are high-conviction managers that are skilled at stock-picking and have been doing it for years."
a website for the campaign, featuring white papers by Cramers, examples from Touchstone's funds, videos of Touchstone's PMs, and more.
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