I kept thinking why was excess volatility so low for Quant MFs and I reached out to a client who runs a large advisory set up and asked him. "Do you know their turnover? I have an intuition it's very high". The client said, "It's acknowledged that their turnover is very high". I had my answer for how despite more than half of the segment data showcasing negative excess volatility, the fund was actually taking excessive risk to generate its incremental alpha. Let me introduce you to the magic of turnover and why you should not touch funds with turnover higher than annually 50%.