Benchmark

Have you ever had trouble finding the appropriate benchmark for a product?

2013-08-29 04:19:25
Stephen Berei
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Are you ever unsure what benchmark to use for a specific product?  Several times we get the question as to which benchmark would be appropriate or the "correct" benchmark to run versus a manager.  Well, we have a few solutions for you within StyleADVISOR:
  1. Manually add the Market Benchmark and look at specific benchmark relative statistics such as R-Squared, Tracking Error, etc.
  2. Run Returns-Based Style Analysis to build a blended benchmark

More information about this topic:

Benchmarks

Benchmarks

At the heart of a quality manager analysis is a good benchmark. According to AIMR, in order for a benchmark to be a valid and effective tool for measuring a manager’s performance, it must be unambiguous, investable, measurable, appropriate, reflective of current investment opinions and specified in advance. A benchmark with all of these characteristics is the “style benchmark,” which is explained in this article.
 
 

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