Hit Rate and Win-Loss Ratio By Andrea Gentilini

Hit Rate and Win-Loss Ratios are key aggregate metrics which investors should monitor across their portfolios. Broadly speaking, Hit Rate is a measurement of the ratio between the number of winning stock ideas vs. the number of losing ideas over a given period divided by the total number of stock ideas pursued.

Win-Loss Ratio on the other hand is defined as the ratio between the average P&L of winning positions versus the average P&L of losing positions. These definitions are appropriate for absolute-return portfolios, but can be easily adapted to a benchmark-oriented investment strategy.

In our latest report, Andrea Gentilini, Head of Europe at Novus will break these two critical metrics down to show why they matter to both managers as well as institutional investors.

What's in the report?

  • Why Hit Rate and Win-Loss Ratios are Important to Track?
  • What are 'Relative Net Gains?'
  • How HR and WLR Relate to Risk-Adjusted Returns