FYI: There are few more insulting things you could call a discretionary active fund manager than a “closet indexer.” Them’s fightin’ words! In investor parlance, this barb is intended to chastise active portfolio managers who essentially mirror their benchmark, yet hang out their shingle as being worthy of premium fees under the guise of delivering outperformance relative to said benchmark. Said differently, closet indexers sell you a Whopper for the price of Wagyu beef.
Regards,
Ted
https://bpsandpieces.com/2019/09/23/closet-active/
