Outperform

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Outperform

In general, this means to do better than some particular benchmark. Mutual Fund XYZ is said to outperform the S&P500 if its return exceeds the S&P500 return. However, this language does not take risk into account. That is, one might have a higher return than the benchmark in a particular year because of higher risk exposure. Outperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do better than its industry average. Related: underperform.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Market Outperform

A broker's or brokerage firm's rating of a security. Such a security is expected to do marginally better than the market as a whole for the period of time it holds the "market outperform" rating. Some firms call the rating "accumulate," "moderate buy," or simply "outperform." Different firms have different rating systems, but "market outperform" is usually one rating above "market perform" or "neutral," and one rating below "buy." For example, if the market is expected to go down slightly, but a certain company's fundamentals are thought to be sound, a brokerage firm might change that company's rating from market perform to market outperform.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Much of last decade's outperformance has been reversed.
While property stocks could continue to perform well, especially with falling interest rates, investors should keep a close eye on the risk factors highlighted above as these could derail property stocks' outperformance at any moment.
Outperformance of returns for domestic vs international stocks can often last for an extended period of time.
"It's an impressive outperformance versus the bailout programme target for the primary surplus," said Athens-based Eurobank's chief economist Platon Monokroussos.
SCM Direct's conclusion is that, if you strip out the effects of this bias towards smaller companies, the outperformance for all-companies funds entirely disappeared and almost entirely disappeared for income funds.
He added that, theoretically, if outperformance were high, then investing in active funds just might be worthwhile despite the low probability of a payoff.
However, given the recent absolute and relative outperformance of Russian oil and gas names, we believe it is now time to reduce exposure to the sector, with one exception.
(ADM807) Selectivity Remains Key to Outperformance in Fairly Valued BDC Industry - Vernon C.
In addition, the Emirates Balanced Managed Fund attracted investor interest registering two per cent outperformance against the benchmark to return 8.1 per cent, while the Emirates Conservative Fund outperformed its benchmark by 1.1 per cent, gaining 4.5 per cent.
Most studies show that consistent outperformance over successive years is very difficult to achieve, particularly in developed markets where the accessibility of information levels the playing field.
Perhaps the outperformance was more luck than skill in the first place, perhaps the market environment changed and that turned a successful strategy into one unsuited to the market ecology; or perhaps managers just becomes less interested as they make more money.
PIEF delivered annualized YTD (Year-to-Date) return of 9.68% against the industry average of -4.30% in Aggressive Income Funds Category, translating into an outperformance of 13.98% against its peer group and PCF delivered annualized YTD (Year-to-Date) return of 11.41% against the industry average of 10.99% in Money Market Category, translating into an outperformance of 0.42% against its peer group (as of 26th January 2011).