Performance Evaluation and Attribution of Security Portfolios

Performance evaluation and attribution are critical to understanding portfolio risks and manager skill. There has been a large body of academic literature on these topics, but until now, no accessible text book covering all of these critical issues in one place.

In the past, I kind of believe that index funds are the choices for the common people. However, I did not actually follow this concept faithfully.

As the investment industry has seen a staggering growth in recent years, the area of investment performance measurement has become an area of significant research activities and increasing importance within investment firms. Although there are already quite a few books and numerous articles available in this area, the new book by Russell Wermers and Bernd Fischer is the first one to systematically present the actual status in theory and practice comprehensively and to combine the views of an academic (Russ Wermers, a Professor at the University of Maryland) and a practitioner (Bernd Fischer, Managing Director at IDS, a subsidiary of Allianz).