Tag Archives: peer group

Investment performance: measurement versus calculation

I recently had a frustrating — for both parties — conversation involving performance measurement. I said “measurement”.  My dialogist heard “calculation” but wanted “measurement”.  We went dizzy in the chase. Calculation and Measurement What’s the difference? A calculation is what computers do. A measurement is an assessment.  It is a comparison with an ulterior motive. I’m … Continue reading

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What is a good benchmark?

One suggestion is that benchmarks should be: transparent & unambiguous frame-able & customize-able appropriate with full coverage investable The source of this suggestion is Setting the Benchmark: Spotlight on Private Equity. This was discussed by All About Alpha.  The paper considers indices and peer groups as benchmarks.  They did not consider random portfolios. Let’s look … Continue reading

Posted in Performance, Random portfolios | Tagged , | 2 Comments