Hulbert Rating

AAA

DEFINITION of 'Hulbert Rating'

A ranking system that tracks the performance of investment newsletters over time. The Hulbert rating system creates theoretical portfolios based on the buy and sell advice of each newsletter and then tracks their risk-adjusted returns over time. Newsletters that perform the best on a risk-adjusted basis are given the highest ratings, while those that underperform are given lower ratings.

INVESTOPEDIA EXPLAINS 'Hulbert Rating'

The Hulbert rating system was the first system used to objectively evaluate the recommendations of investment newsletters. The rating system has found several newsletters that have outperformed the market over considerable periods, although most underperform. This result roughly matches with academic work that has found that the majority of actively managed mutual funds underperform the market. Yet a small percentage that outperform over longer time periods remains. Whether this outperformance is due to good luck or superior skill is a matter of debate.

RELATED TERMS
  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Management Tenure

    The length of time that a manager(s) has been at the helm of ...
  3. Active Investing

    An investment strategy involving ongoing buying and selling actions ...
  4. Active Management

    The use of a human element, such as a single manager, co-managers ...
  5. Efficient Market Hypothesis - EMH

    An investment theory that states it is impossible to "beat the ...
  6. Historic Pricing

    A method for calculating the value of an asset using the last ...
Related Articles
  1. Technical Indicators

    Investors Intelligence Sentiment Index

    This indicator can give a overall sense of bull and bear forces - learn what it is and how it's constructed.
  2. Evaluating Paid Investing Newsletters
    Investing Basics

    Evaluating Paid Investing Newsletters

    Investopedia explains: There are many different newsletters available, and investors must decide which is most appropriate for their investing style.
  3. Mutual Funds & ETFs

    How To Pick A Good Mutual Fund

    Learn how to evaluate mutual funds and find the right one for you.
  4. Active Trading

    The Benefits Of An Investment Club

    Don't want to be a passive investor? Discover how investment clubs allow you to take control of your portfolio.
  5. Mutual Funds & ETFs

    Pick The Winners At The Mutual Fund Track!

    For both mutual funds and racehorses, there's no surefire way to pick a winner.
  6. Fundamental Analysis

    What is a good interest coverage ratio?

    Learn the importance of the interest coverage ratio, one of the primary debt ratios analysts use to evaluate a company's financial health.
  7. Fundamental Analysis

    What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be an unacceptably low coverage ratio.
  8. Technical Indicators

    What is a good gearing ratio?

    Understand the meaning of the gearing ratio, how it is calculated, the definition of high and low gearing, and how they reflect relative financial stability.
  9. Investing Basics

    What is the difference between the gearing ratio and the debt-to-equity ratio?

    Dive deeper into gearing ratios: what are they, how are they used and why the debt to equity ratio is one of the most popular analytical gearing tools.
  10. Investing Basics

    What is the difference between interest coverage ratio and TIE?

    Read about the times interest earned, also known as the interest coverage ratio. Find out why this is an important ratio for investors and creditors.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center