Using Active Share and tracking error, the author sorted all-equity mutual funds into various categories
of active management. The most active stock pickers outperformed their benchmark indices even after fees, whereas closet indexers underperformed. These patterns held during the 2008–09 financial crisis and within market-cap styles.
Petajisto, A. 2013 ‘Active Share and Mutual Fund Performance’ in Financial Analysts Journal (Jul/Aug 2013, Vol. 69, No. 4), The CFA Institute, pp. 73-93
