Great post.

Active share is one of several measures that can help to identify managers that have a better chance of beating the market.

You can find out more on my blog: wwww.marketfox.org

On its own, it doesn't tell investors much. Just because a manager's portfolio is "different" doesn't necessarily mean that it's a "good" portfolio.

Investors need to look at several factors before making a judgement on the quality of a fund manager.

That said, many of the best investors run concentrated portfolios (Buffett) but not all of them (Schloss).

Several fund managers have written articles pointing out potential flaws in active share (e.g. Fidelity). Coincidentally, they also have big businesses selling benchmark-relative products. Funny that.