A way of measuring the risk attached to a hedge fund, calculated as a ratio between the fund's compounded annual return and the average maximum drawdown minus ten percent. The higher this ratio, the greater the fund's expected return relative to the expected level of risk.
Related information about Sterling ratio:
- Sterling ratio - Wikipedia, the free encyclopedia
The Sterling ratio (SR) is a measure of the risk-adjusted return of an investment portfolio. Multiple definitions of the Sterling ratio exist. The original definition was ...
- Sterling Ratio Definition | Investopedia
A ratio used mainly in the context of hedge funds. This risk-reward measure determines which hedge funds have the highest returns while enduring the least ...
- What is the Sterling Ratio ?
The Sterling ratio is a comparison of historical reward and risk and was first developed by Deane Sterling Jones (company no longer in existence). Several ...
- Sterling Ratio definition - BarclayHedge
The Sterling Ratio is equal to the average annual rate of return for the past three calendar years divided by the average of the maximum annual drawdown in ...
- Sterling Ratio Definition | PerTrac > PerTrac
The definition and formula for calculating the Sterling Ratio are provided in this section of Investment Statistics: A Reference Guide from PerTrac.
- Sterling Ratio - MyPivots
Sterling Ratio. The Sterling Ratio (SR) is a measure of the risk-adjusted return of an investment portfolio. The original definition of the sterling ratio was probably ...
- Sterling Ratio - Financial Dictionary - The Free Dictionary
A ratio of the potential return on a hedge fund to a measure of risk. A higher ratio is considered more desirable because it indicates that the hedge fund has a ...
- Pro-Trading-Profits: Sterling Ratio
An explanation of how the Sterling Ratio is calculated and how it can be used to analyse a trading system's results.