Underperform

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Underperform

In general, this means to do worse than some particular benchmark. Mutual Fund XYZ is said to underperform the S&P500 if its return falls short of the S&P500 return. However, this language does not take risk into account. That is, one might have a lower return than the benchmark in a particular year because of lower risk exposure. Underperform is also a term used by analysts to describe the prospects of a particular company. Usually, this means that the company will do worse than its industry average. Related: outperform.

Underperform

A broker's or brokerage firm's rating of a security. Such a security is expected to do marginally worse than the market as a whole for the period of time it holds the "underperform" rating. Some firms call the rating "market underperform" "moderate sell" or "weak hold." Different firms have different rating systems, but "underperform" is usually one rating above "sell" and one rating below "market perform" or "neutral." For example, if the market is expected to rise slightly, but a certain company's fundamentals are thought to be slightly weaker than the rest of the market, a brokerage firm might change that company's rating from market perform to underperform.
References in periodicals archive ?
And is the relative underperformance of Australian versus global shares over?
Best's opinion, the traditional retakaful operator has struggled to gain traction in a highly competitive reinsurance market because of the limited access to quality business, predominantly resulting from the underperformance of the primary takaful sector.
"The underperformance is credit negative for Cypriot banks because it will lengthen the time that banks need to rehabilitate loan books and strengthen balance sheets, and may create a need for additional provisions," the rating company said in an emailed statement.
It is unlikely that a director's underperformance would be considered a breach of the duty of care.
Credit Suisse (NYSE: CS) has said that underperformance by India is set to continue.
The first studied nine farms over a 12-week period and found that animal performance was only 0.25kg/day, demonstrating severe underperformance. On a commercial farm, monitoring animal performance on a monthly basis will help correct underperformance quicker.
We haven't quite got to that stage in the UK yet, but there is increasing evidence that investors are much more impatient of short-term underperformance than previously.
But the Research Affiliates duo take readers inside the pressure-filled world of investment fiduciaries who have the responsibility to report and act on manager underperformance on a quarterly basis.
"These officers have been sent home for underperformance. There's nothing more to it than that", a police official told local media.
Fitch Ratings on May 2 said Jamaica's achievement in hitting fiscal targets "is considerable given the background of persistent economic weakness and revenue underperformance. Political consensus remains in favour of structural adjustments through the country's IMF programme, but sustained fiscal consolidation will be challenging if there is growth underperformance or reform fatigue.
Claims filed for projects reveal that few of the risks first feared, such as module underperformance in hot climates, panel theft and defunct warranties from manufacturer bankruptcies, have been reported.
Claims filed for projects reveal that few of the risks first feared such as module underperformance in hot climates, panel theft, and defunct warranties from manufacturer bankruptcies have been reported.