Down-Market Capture Ratio

AAA

DEFINITION of 'Down-Market Capture Ratio'

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


INVESTOPEDIA EXPLAINS '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. Batting Average

    A statistical measure used to measure an investment manager's ...
  3. Alpha

    1. A measure of performance on a risk-adjusted basis. Alpha takes ...
  4. Beta

    A measure of the volatility, or systematic risk, of a security ...
  5. Index

    A statistical measure of change in an economy or a securities ...
  6. Portfolio Manager

    The person or persons responsible for investing a mutual, exchange-traded ...
Related Articles
  1. Does Your Investment Manager Measure ...
    Personal Finance

    Does Your Investment Manager Measure ...

  2. Evaluating Your Stock Broker
    Brokers

    Evaluating Your Stock Broker

  3. Your Mutual Fund: It's Riskier Than ...
    Mutual Funds & ETFs

    Your Mutual Fund: It's Riskier Than ...

  4. Has Your Fund Manager Been Through A ...
    Options & Futures

    Has Your Fund Manager Been Through A ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center