Origins of Active Share Methodology
Martijn Cremers, PhD, served as a faculty member at Yale School of Management when he wrote the paper “How Active Is Your Fund Manager? A New Measure That Predicts Performance” (published in the Review of Financial Studies, 2009) which introduced a measure of active management called active share that is based on a comparison of the holdings of a fund with those of its benchmark. The active share measure has become widely used in the financial industry.
In order to outperform the benchmark, a fund needs to be different from the benchmark.Dr. Cremers has since joined the University of Notre Dame as Professor of Finance. At Notre Dame, he teaches courses on fixed income markets and corporate governance to MBA and undergraduate students.
Cremers’ research focuses on empirical issues in investments and corporate governance. His academic work has been published in top academic journals such as the Journal of Finance, the Review of Financial Studies and the Journal of Financial Economics.
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