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
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
