Home HSZ Group  |  Home HSZ China Fund  |  Contact
 
The information ratio is another performance measure. Whereas the Sharpe ratio relates an excess return on a portfolio to its volatility, the information ratio relates the alpha generated by the portfolio manager to the tracking error which quantifies the risk of deviating from a given market or benchmark.
 
A high information ratio implies that a portfolio manager is able to earn high excess returns relative to the risk incurred by deviating from the benchmark.

back
Back