Up-Market Capture Ratio

What is the 'Up-Market Capture Ratio'

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

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

BREAKING DOWN 'Up-Market Capture Ratio'

An investment manager who has an up-market ratio greater than 100 has outperformed the index during the up-market. For example, a manager with an up-market capture ratio of 120 indicates that the manager outperformed the market by 20% during the specified period. Many analysts use this simple calculation in their broader assessments of individual investment managers.

RELATED TERMS
  1. Down-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. Batting Average

    A statistical measure used to measure an investment manager's ...
  4. Current Ratio

    The current ratio is a liquidity ratio measuring a company's ...
  5. Risk/Reward Ratio

    A ratio used by many investors to compare the expected returns ...
  6. Cash Return On Assets Ratio

    A ratio used to compare a businesses performance among other ...
Related Articles
  1. Mutual Funds & ETFs

    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. Mutual Funds & ETFs

    FCNTX: Fidelity Contrafund Risk Statistics Case Study

    Explore a risk statistics case study on the Fidelity Contrafund, including its characteristics and how it has performed against the S&P 500 Index.
  3. Mutual Funds & ETFs

    DODGX: A Risk Statistics Case Study

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

    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.
  5. Mutual Funds & ETFs

    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.
  6. Fundamental Analysis

    Efficiency Ratio

    There are many types of efficiency ratios, but all measure how well a company utilizes its resources to make a profit. Business managers use these ratios to determine how well they are operating ...
  7. Mutual Funds & ETFs

    Analyzing Mutual Funds For Maximum Return

    Using a few simple metrics will help you pick the right fund for your portfolio.
  8. Forex

    The Price To Earnings Ratio Explained

    The price to earnings ratio is one of the most important ratios in investing. Find out how it is calculated, how it can be used and what it tells investors about a particular stock.
  9. Investing Basics

    Analyze Investments Quickly With Ratios

    Make informed decisions about your investments with these easy equations.
  10. Mutual Funds & ETFs

    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.
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. 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 >>
  3. 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 >>
  4. 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 >>
  5. What is the difference between efficiency ratios and profitability ratios?

    Learn about efficiency and profitability ratios, what these ratios measure and the main difference between efficiency and ... 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. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center