RT Journal Article SR Electronic T1 What it Takes to Beat a Benchmark JF The Journal of Investing FD Institutional Investor Journals SP 37 OP 42 DO 10.3905/joi.2003.319552 VO 12 IS 3 A1 Brett H. Wander YR 2003 UL https://pm-research.com/content/12/3/37.abstract AB The relationship between a manager's level of skill and the actual value-added to a portfolio can be nebulous. Actual portfolio results are often only minimally correlated with the manager's skill level. A framework for quantifying the expected value-added of a constrained portfolio focuses on the three distinct factors that contribute to investment performance: a manager's forecasting skill ability to predict excess returns; the manager's range of opportunities to apply skill across securities and over time; the flexibility provided for a manager to express forecasting skill in a portfolio that is constrained to some degree.