Friday, November 15, 2013

Topology and performance attribution

It may seem like a stretch, but the very esoteric and complex mathematical area topology and performance attribution have something in common: mapping. Topologists map points from one surface to another, while PMPs (Performance Measurement Professionals) map weights and returns from the portfolio to the benchmark.

The following graphic should give you an idea of the mapping we do:
I will have more to say about this topic in this month's newsletters.

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