Manager Research Our Track Record

Fundhouse keeps track of every active investment strategy we review and we evaluate whether the funds or investment strategies we select or deselect have outperformed or underperformed over the long term. Each fund or strategy is measured net of fees against a tough passive benchmark (not peer group) and this ensures that we hold ourselves to account for adding value as fund evaluators and selectors.

What would you expect? We only offer 3 ratings Tier 1, Tier 2 and Tier 3. Those funds or strategies that are rated best (Tier 1) should outperform and those rated negatively (Tier 3) should underperform. Those rated as Tier 2, should marginally outperform.

We measure our success in terms of long term hit rates. Positively rated funds and strategies that outperform the index, after all fees, receive a positive hit rate. Negatively rated funds and strategies that underperform the index, after all fees, receive a positive hit rate. We only track performance where the period is greater than 3 years long and then track each strategy or fund since inception of the rating.

Ratings Hit Rates, 3yr Rolling

  • Tier 1 strategies outperform their index 67% of the time,
    net of fees since initiating a rating.
  • Tier 3 strategies underperform their index 82% of the time,
    net of fees since initiating a rating.

Alpha Gained (Tier 1) and Alpha Lost (Tier 3)

  • Tier 1 strategies outperform their indices by 58.4% in aggregate,
    net of fees since initiating a rating.
  • Tier 3 strategies underperform their index by -103.8%, net of fees
    since initiating a rating.
The above 2 charts cover all strategies rated with a track record over 3 years as at 31 July 2017.