Peer Share

Peer Share is similar to Active Share except that instead of an index, Peer Share measures the percentage or equity holdings in a portfolio that differ from the eVestment Peer Alpha universe constituents. eVestment has assembled 49 peer universes, constructed on investment style factors such as capitalization, quality and sector emphasis. Peer groups are reconstituted quarterly. It is calculated by summing the absolute difference of the weight of each holding in the portfolio versus the eVestment Peer Alpha universe and dividing by two.

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.