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How important is peer group comparison?

April 26, 2017comparison group peer

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How important is peer group comparison?

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Peer group comparison provides a useful “high level” indication of the competitiveness of execution performance and commission levels. However, the differences between companies are considerable (even where the overall investment approach and size are comparable). This makes it extremely difficult to draw meaningful detailed conclusions that are genuinely reliable. Overall greater improvement will come from more sophisticated analysis of a manager’s own trading than from peer group comparison.