The Equivalent of W a R for Investing

P a r is performance above replacement. In w a r, we compare the offensive and the defensive stats of a professional position player to a readily available replacement manager like an e t f. This is particularly important for long short equity and global macro investors because they are constantly changing their gross and net exposures. The driving force behind the most commonly uttered phrase of active managers trying to explain how they do a good job: "We capture x % of the upside in our market, but only y % of our market in the downside"