Benchmarks and Investment Management

To highly skilled managers, benchmarks are confining, but to managers without the ability to consistently add alpha and to investors, benchmarks are a boon. In this Research Foundation monograph, the author explores many issues surrounding investment benchmarks and benchmarking and outlines a compromise that might ease the natural tension between active managers who believe they have real skill and bristle at the need to be measured by benchmarks and investors who want a benchmark so they can measure performance.