Core-satellite
A portfolio built from a large passive core and a few small active bets: the core determines the result, the satellites are capped by share.
How to read the number
The purpose of the design is the price of being wrong: a failed active idea costs a known share of the portfolio rather than the whole result.
When the metric lies
Without a size rule the satellites swell after a good stretch and quietly become the core: the allocation changes in fact although nobody decided to change it.
Also known as: core and satellites