What is the 'Down-Market Capture Ratio'

The down-market capture ratio is a statistical measure of an investment manager's overall performance in down-markets. The down-market capture ratio is used to evaluate how well or poorly an investment manager performed relative to an index during periods when that index has dropped. The ratio is calculated by dividing the manager's returns by the returns of the index during the down-market and multiplying that factor by 100.

down market capture ratio = manager returns/index returns x 100


BREAKING DOWN 'Down-Market Capture Ratio'

An investment manager who has a down-market ratio less than 100 has outperformed the index during the down-market. For example, a manager with a down-market capture ratio of 80 indicates that the manager's portfolio declined only 80% as much as the index during the period in question. Many analysts use this simple calculation in their broader assessments of individual investment managers.

RELATED TERMS
  1. Up-Market Capture Ratio

    A statistical measure of an investment manager's overall performance ...
  2. Combined Ratio

    A measure of profitability used by an insurance company to indicate ...
  3. Current Ratio

    The current ratio is a liquidity ratio measuring a company's ...
  4. Ratio Analysis

    A ratio analysis is a quantitative analysis of information contained ...
  5. Index Investing

    A form of passive investing that aims to generate the same rate ...
  6. Key Ratio

    A mathematical ratio that illustrates and summarizes the current ...
Related Articles
  1. Investing

    VGENX: Vanguard Energy Fund Risk Statistics Case Study

    Explore a risk statistics case study on the Vanguard Energy Fund, and learn about its historical modern portfolio theory and volatility statistics.
  2. Investing

    Find Out All About Vanguard 500 Index Fund!

    Discover a risk statistics case study of the Vanguard 500 Index Fund, and learn about its historical beta, alpha, Treynor ratio and volatility.
  3. Investing

    FCNTX: Is It Worth Your Investment?

    Explore a risk statistics case study on the Fidelity Contrafund, including its characteristics and how it has performed against the S&P 500 Index.
  4. Financial Advisor

    Does Your Investment Manager Measure Up?

    These key stats will reveal whether your advisor is a league leader or a benchwarmer.
  5. Investing

    DODGX: Mutual Fund That Seeks Long Term Principal and Income

    Review a volatility and modern portfolio theory statistics case study of the Dodge & Cox Stock Fund, and consider whether it suits your investment profile.
  6. Investing

    Looking for Non-U.S. Yield? Consider This Powershares EM ETF (PCY)

    Explore an analysis of the PowerShares Emerging Markets Sovereign Debt ETF, and learn about its characteristics and whether you should consider the ETF.
  7. Investing

    3 Expensive Growth ETFs Worth Your While (PWB, QQXT)

    Compare the performances of three growth ETFs with their expense ratios, and consider the cost efficiency of the ETFs having higher management expenses.
  8. Investing

    DBA vs. USAG: Comparing Agriculture ETFs

    Read a comparison of USAG and DBA, and learn about the characteristics, strategies and performance statistics of these agriculture exchange-traded funds.
  9. Investing

    3 Expensive U.S. Fixed Income ETFs Worth Your While (FPE, PGF)

    Consider the impressive yields and capital appreciation opportunities presented by preferred stock ETFs when selecting fixed-income investments.
  10. Investing

    VGHCX: Vanguard Health Care Fund Risk Statistics Case Study

    Discover one of the largest health care-focused mutual funds, and learn about the fund's historical values for seven key risk measures.
RELATED FAQS
  1. What is the difference between a sharpe ratio and an information ratio?

    Understand the meaning of the Sharpe ratio and the information ratio, and understand how they differ as tools for evaluating ... Read Answer >>
  2. Why do shareholders need financial statements?

    Discover the importance of a company's financial statements for stock shareholders in evaluating their equity investment ... Read Answer >>
  3. What are the advantages and disadvantages of zero-based budgeting in accounting?

    Learn how the information ratio is calculated as a risk-adjusted measure of performance, and understand how it seeks to differentiate ... Read Answer >>
  4. How do stock dividends affect the retained earnings account?

    Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... Read Answer >>
  5. What role does ratio analysis play in valuing a company?

    Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >>
  6. How do I use ratios to perform a financial analysis?

    Learn which ratios are used in fundamental analysis. Find out how analysts measure company performance and financial health ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center