Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The return on an investment or portfolio over a period of time shorter than the money manager's designated evaluation period. The evaluation period is a time during which a return is measured to evaluate the money manager's performance. A subperiod return can be useful because some money managers make excessively risky or losing investments until the end of the evaluation period, at which time he/she makes a series of "sure deal" investments to increase the return. Looking at subperiod returns helps to discount this possibility when evaluating the money manager.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved