Teacher Retirement System of Texas
Discrimination within active: of the plan's public-equity managers, which actually take stock-specific risk versus buyable market, sector, and style exposure. Ranked by residual risk share — the only slice of variance where an active fee can be earned; the selection return itself is on each manager's dossier. Evidence, not a recommendation.
The roster in aggregate — an equal-weighted average of the 11 resolved managers' decompositions. 80% of the average manager's risk is buyable market / sector / subsector exposure; 19% is residual risk — the stock-specific share where selection can pay. (A true combined-sleeve decomposition would credit cross-manager diversification and read lower still; real allocation weights refine this.)
And it's concentrated: the top 2 managers (Theleme Partners and Pershing Square Capital Management) account for 46% of the summed per-manager residual risk shares — most of the 11 managers cluster in buyable exposure you already own.
Key
| Name |
|---|