This method of judging risk against return is employed by top fund manager Terry Smith
Thursday 13 Feb 2020 Author: Yoosof Farah
A little known but potentially very useful way to measure the return on an investment received its moment in the spotlight in January 2020 after getting name checked by star fund manager Terry Smith. In his his annual letter to shareholders in Fundsmith Equity (B41YBW7) , Smith included something called the ‘Sortino ratio’ for the first time when looking at the fund’s performance. It is an adaption of the...