Performance measurement for alternative investments portfolios

Performance Measurement for Alternative Investments Portfolios

Alternative investments have unique challenges associated with performance measurement.

August 2023

Due to the expansion of traditional asset manager product lines to alternative investments – as well as the increased use of vehicles that provide wealth managers and individual investors access to private markets – many analysts are interested in how to enhance their performance measurement process.

Traditional performance frameworks must be modified to account for the unique attributes and challenges associated with alternative investments (private equity, real estate and hedge funds). This article, authored by Bruce Feibel, State Street Alpha®  Platform Manager, and published in the August 2023 edition of The Journal of Portfolio Management, provides an overview of the practices used for measuring performance in the alternative investments industry.

The methods described adhere to the CFA Institute’s Global Investment Performance Standards (GIPS®) to ensure that investors can make well-informed decisions based on accurate and comparable data.


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