Excess Return Decomposition

These charts shows if a fund manager is adding value to a fund.

The chart will show:

  • Excess Return - The Fund Total Return minus the Fund Benchmark Total Return over a rolling/discrete period
  • Alpha - The Alpha over the rolling/discrete period
  • Beta - The Excess Return minus the Alpha (the difference)

Reading the chart, you want lots of red at the top of the charts to show this.