“Those who are interested in high performing active equity funds” - that is a key sentence that should not be causally read. Understanding the reasoning for this stated goal must be evaluated. My children want ice cream for lunch and dinner but that isn’t a rational choice.

Concentrated portfolios with 10-20 best ideas may make sense for that pursuit and can avoid the “shadow index” noted. I appreciate the analysis by Mr. Howard and find this conversation very important and worth continued research because it applies to many aspects of institutional and private wealth asset management not just equity funds.