Assessing Performance Records
Comment of the Day

February 24 2012

Commentary by David Fuller

Assessing Performance Records

My thanks to a subscriber for this interesting case study by Howard Marks of Oaktree Capital Management, based on his experience while chair of University of Pennsylvania's Investment Board. Here is the opening:
What are the non-negotiable requirements for accurately assessing investment performance? I'd say:

• a record spanning a significant number of years,
• a period that includes both good years and bad, enabling us to assess performance under a variety of circumstances, and
• a benchmark or peer universe that makes for a relevant comparison.

David Fuller's view I think this case study will be of interest to many subscribers, not least those who manage endowment funds or the equivalent.

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