Fairval

Notes on Indian equities, sectors and economy

The concept of upside risk

Posted by fairval on August 9, 2010

Quite a few broker reports tend to have this line ‘xyz can lead to an upside risk’.  If you are buying long, hard to see how doing better is a risk. For a derivative strategy, it might be.

I suppose brokers like these wont like the Sortino ratio too much, which has become quite popular in evaluating mutual fund performance, compared to the older Sharpe ratio.

See this line from a recent report on Havells..

Successful turnaround of Sylvania is an upside risk

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