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Less-Liquid Holdings Could Mean More-Solid Results.
The views expressed in this article are those of the authors as of the dates of the article. The opinions expressed are subject to change, are not guaranteed and are not intended as a forecast or as a recommendation to buy or sell any security.
Past performance does not guarantee future results. The data provided in this reprint is historical sector or index specific performance and is not indicative or predictive of any future returns. You may not invest directly in an index or sector. The historical returns provided are not representative of any Perritt Fund. Standardized performance for our funds can be obtained by clicking here.
Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. Standard Deviation is a statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Tresury Bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The t-statistic is a ratio of the departure of an estimated parameter from its notional value and its standard error. Upside capture is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen. Downside capture is used to evaluate how well or poorly an investment manager performed relative to an index during periods when that index has dropped. The Rusell 3000 Index encompasses the 3,000 largest U.S.-traded stocks.