What is the 'DownMarket Capture Ratio'
The downmarket capture ratio is a statistical measure of an investment manager's overall performance in downmarkets. The downmarket 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 downmarket and multiplying that factor by 100.
BREAKING DOWN 'DownMarket Capture Ratio'
An investment manager who has a downmarket ratio less than 100 has outperformed the index during the downmarket. For example, a manager with a downmarket 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.

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