TY - JOUR T1 - Hidden Cost of Trading and Portfolio Performance: <em>A Short Note on Implementation Shortfall</em> JF - The Journal of Investing DO - 10.3905/joi.2018.1.072 SP - joi.2018.1.072 AU - Rafiqul Bhuyan AU - Mohammad Sogir Hossain Khandoker Y1 - 2018/11/13 UR - https://pm-research.com/content/early/2018/11/14/joi.2018.1.072.abstract N2 - Chasing performance is a constant battle among fund managers and other investors. Stock picking ability is not the only means to perform that chase well. Trading wisely by managing transaction costs, which comprise all visible, invisible, and implied or hidden costs, is also a significant factor. In his seminal paper, Perold (1988) is the first to point out that fixed charges are not the only costs of trading. Instead, they are rather a small portion of the total transaction costs that include other costs known as ‘implementation shortfall.’ In this short article, the authors extend on the existing literature by highlighting various aspects of the execution and opportunity costs that can give traders a much clear understanding of implementation shortfall and help them to use this guidance in trading wisely. ER -