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  Skill Analysis

Fund Manager Performance and Success Measurement Tools

Skill Analysis takes results from Skill Screening, and allows users to slice and dice the results to identify different attributes of a manager’s factor profile as well as the derivation of factor and stock selection skill.

 
The Skill Analysis module allows users to dissect a manager’s track record to distinguish manager skill from style and/or luck. The module provides a cross-sectional analysis among managers with similar factor exposures and decomposes skill into factor rotation vs. stock selection skill. This provides investors with a more accurate understanding of a manager’s performance and can help them avoid the common mistake of characterizing luck as skill. Managers typically approach their portfolio from the perspective of a specific style. This creates structural biases that are rewarded and penalized by the market at different points in the cycle. Because of this, there are instances that a manager’s structural bias could result in outperformance or underperformance and be mistaken for stock selection skill. The Skill Analysis Module provides an understanding of whether the manager truly exhibited stock selection skill. This understanding is crucial for investors to make informed manager allocation decisions.

HOW SKILLS ANALYSIS WORKS:

START A SKILL ANALYSIS

Skill Analysis offers you the ability to further slice and dice a Managers by using Aapryl’s Skill Score.

SELECT A MANAGER PRODUCT

Select a single or multiple Products to compare.

ANALYZE SKILL ANALYSIS

View multiple charts and tables, which provide historical measurements of a Products Skill, and other attributes.

Skills Analysis Highlights for Fund Manager Performance:

  • Decompose manager returns through cross-sectional analysis to identify factor exposures.
  • Separate true manager skill from performance produced by an inherent factor bias within an investment process.
  • Confirm or invalidate manager claims regarding their record of producing alpha.
  • Assess the consistency of their investment process.
  • Compare managers with similar factor exposures.
  • Make well-informed decisions regarding manager selection and allocations.

For more information on how Aapryl's proprietary methodologies can be used, please contact us at info@aapryl.com.