Active Management: Revisiting the Publicized Merits of Concentrated Portfolio Construction

For the past few years, the passive versus active debate has been characterized as a pitched battle between two sides. Upon closer inspection, however, some might recognize that this ongoing argument is far more nuanced than it appears at fi rst blush and actually involves multiple sides with somewhat vague allegiances. Among actively managed funds, for instance, two distinct camps have emerged: those that favor a concentrated portfolio and those that espouse a highly diversifi ed approach.