Misfit active return

[June06]

Is below statement correct?
Misfit active return refers to performance of the manager relative to the imperfect benchmark (i.e. a benchmark that is not suitable for the manager’s style). It basically represents returns earned due to stock selection skill of manager.

 

[BaseballRedhawks]

That statement is incorrect.
Misfit active return is the Managers True benchmark vs whatever the investor/clients benchmark is.

 

[June06]

Thanks…it’s from Finquiz note…I feel weird as well.

 

[Audacious]

From the perspective of the manager, the benchmark is not perfect, he wants to make perfect; hence generating active misfit return.
” I used to be arrogant, now am perfect “