I was recently interviewed by Pensions & Investments ("Fiduciary delegation," July 22, 2013) regarding the appropriateness of expanding the Global Investment Performance Standards (GIPS(R)) to outsourcing firms: firms that provide investment services to...
Performance Perspectives Blog
Thoughts on performance measurement from David Spaulding and other members of our team.
![The tentacular reach of the GIPS standards](https://tsgperformance.com/wp-content/uploads/2013/08/octopus.jpg)
The tentacular reach of the GIPS standards
![Being willing to be different and the need to challenge / confirm conventional wisdom](https://tsgperformance.com/wp-content/uploads/2013/08/flop.png)
Being willing to be different and the need to challenge / confirm conventional wisdom
In this month's TSG newsletter, I wrote a bit about the high jumper Dick Fosbury, who introduced an entirely different way to scale the bar. I vividly recall watching the meet on television in which this was first publicized. Many laughed (including the announcers) at...
![You can’t perform unless you try](https://tsgperformance.com/wp-content/uploads/2013/07/Jordon.jpg)
You can’t perform unless you try
This photo of one of the legends of sports, not just basketball, was recently posted on FaceBook. I thought it worthy to use as the basis for a blog post.It made me think of two of my TSG colleagues who recently completed degrees part-time, which isn't an easy thing...
![A different kind of performance](https://tsgperformance.com/wp-content/uploads/2013/07/Doug.jpg)
A different kind of performance
When I teach our firm's Fundamentals of Performance Measurement class, I begin by saying how performance measurement isn't limited to investing. We encounter the opportunity to observe or participate in performances all the time. My friend, Herb Chain, is the...
![Golf and performance measurement … more in common than you might think](https://tsgperformance.com/wp-content/uploads/2013/07/golf.jpg)
Golf and performance measurement … more in common than you might think
I'm teaching a Fundamentals of Performance Measurement class in Sydney this week, and it struck me how much we can use from golf that applies to performance measurement. For example:Measuring performance: performance in golf is measured quantitatively (a player's...
![Which return is right?](https://tsgperformance.com/wp-content/uploads/2013/07/question.jpg)
Which return is right?
I was recently asked to do some analysis on a firm's return calculation process; this request stemmed from the fact that they were getting different returns for the same period. I surprised them, I think, when I said that more than one return could be "right."During a...
![A performance measurement myth: rolling up is better](https://tsgperformance.com/wp-content/uploads/2013/07/myth.jpg)
A performance measurement myth: rolling up is better
A common myth that I often run into is the one involving building up returns from the underlying assets. That is, the belief that if you calculate the returns at the security level and then "roll them up" to derive the portfolio return, that is somehow better.WRONG!It...
![Should returns be net of inflation?](https://tsgperformance.com/wp-content/uploads/2013/07/inflation.jpg)
Should returns be net of inflation?
I had a discussion recently with a good friend and colleague, who suggested that when evaluating a manager's performance, returns should be net of inflation. I'm not so sure about this.What are the "nets" we're familiar with:Net-of-fees: most managers charge an...
![Don’t confuse familiarity with understanding](https://tsgperformance.com/wp-content/uploads/2013/07/Samaritan.jpg)
Don’t confuse familiarity with understanding
I'll admit that it's a bit unusual that a sermon would be the inspiration for a blog post, but that's the genesis (pardon the pun) for this one.At Church today, the Gospel was the well known (i.e., familiar) story of The Good Samaritan. Our pastor explained how...
![With 10,000 in circulation, it’s time for a 3rd edition!](https://tsgperformance.com/wp-content/uploads/2013/07/formula-reference-guide-cover.png)
With 10,000 in circulation, it’s time for a 3rd edition!
The second edition of The TSG's very popular Formula Reference Guide is completely sold out. What to do, what to do?Well, we decided! We will publish a third edition, that will be revised and expanded. Plus, special attention will be given to formulas that are on...