Comparison Universe

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Dictionary Says

Definition of 'Comparison Universe'

A comprehensive grouping of investment managers with similar mandates and investment objectives, used as a benchmark to measure a money manager's performance. The size of the fund or money management firm, in terms of assets under management, is another consideration in creating a relevant comparison universe. The best money managers generally figure in the top quartile of their comparison universe on a consistent basis.

Investopedia Says

Investopedia explains 'Comparison Universe'

One criticism of using a comparison universe to measure how well a manager is doing, is that the defined parameters may be too broad to be an effective gauge of performance. Another drawback is that a comparison universe may set an unrealistically high benchmark for investment performance, by excluding poorly-performing managers who are no longer in business, or whose assets have been merged with those of another manager. This is called survivorship bias.
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'Comparison Universe'

  • How's Your Mutual Fund Really Doing?

    http://www.investopedia.com/articles/fundamental-analysis/08/evaluate-investment-performance.asp
    ... Any equity manager or equity mutual fund can be compared to an overall universe
    of other managers. This peer comparison is particularly helpful to gauge the ...

  • Active Management: Is It Working For You?

    http://www.investopedia.com/articles/mutualfund/09/add-value-active-investment-management.asp
    ... Absolute performance indexes, manager universe benchmarks, and factor-model-based
    benchmarks ... As a result, a comparison of the performance of an actively ...

  • Picking Top-Quality Hedge Funds

    http://www.investopedia.com/articles/mutualfund/09/search-hedge-fund.asp
    ... to apply this technique to choosing individual stocks in Peer Comparison Uncovers
    Undervalued ... will not necessarily apply across the remaining universe of funds ...

  • The Top Sector/Market Cap For The Next 12 Months

    http://stocks.investopedia.com/stock-analysis/2011/The-Top-SectorMarket-Cap-For-The-Next-12-Months-CNSL-CBB-IYZ-SPY-PSCU0630.aspx
    ... By comparison, any amount of growth was still going to be disappointing. ... Two compelling
    ideas from this universe rise to the surface almost immediately. ...

  • Stocks For A Declining Market

    http://stocks.investopedia.com/stock-analysis/2010/Stocks-For-A-Declining-Market-ROK-ETN-TAP-SAM-STZ0624.aspx
    ... sector - perhaps the most recession-proof business in the universe - has barely ... one
    or two of the timeframes in question, it might be a dismissible comparison. ...

  • Benchmark Your Returns With Indexes

    http://www.investopedia.com/articles/basics/06/benchmark.asp
    ... There is a quote you may find useful when explaining the nature of investment
    performance: "The most powerful force in the universe is compound interest." The ...

  • Analyzing Mutual Fund Risk

    http://www.investopedia.com/articles/mutualfund/09/analyzing-mutual-fund-risk.asp
    ... A comparison of the fund relative to the sector breakdown of these two ... that employs
    a bottom-up methodology will filter the entire universe of companies based ...

  • An Introduction To Consensus Indicators

    http://www.investopedia.com/articles/trading/02/111802.asp
    ... numerical criteria, the only stable benchmarks that allow comparison of behavior ...
    the overall bullishness or bearishness of their entire universe of advisors. ...

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