| Portfolio Turnover Revisited Should investors care how much trading turnover is taking place in their manager’s portfolio? In many cases the answer is a surprising “yes” particularly when an investor is evaluating a manager’s strategy. Turnover by itself, however, is not a good single measure of investment quality and should be considered as part of an overall strategy. In this newsletter we review some concerns from investors, some insights offered by investment theory and some challenges facing managers. The trend has been to have more turnover in portfolios, so its time to revisit the subject. |
