Peer Share Efficiency is an extension of Active Share Efficiency to eVestment’s Peer Share statistic. Peer Share measures the Active Share of equity strategies against their eVestment Peer Alpha universe. eVestment has assembled 49 peer universes, constructed on investment style factors such as capitalization, quality, and sector emphasis. Peer groups are reconstituted quarterly. Peer Share Efficiency, then, compares a given manager’s Active Share Efficiency to the average Active Share Efficiency for the specified peer group.
Investors who are required to select and monitor investment managers should develop a basic understanding of investment statistics. Quantitative tools can provide you with good insight that you can use in your qualitative interviews with managers and when monitoring your investments.