Monday, January 3, 2011

Median Market Capitalisation

The Median Market Capitalization of a fund is the median (or middle number) of the market capitalisation of the companies held in the portfolio. The use of a median removes the effect that outliers might have on an average. The point of looking at median market capitalization is to determine what size companies the fund is investing into. For instance, a high median market cap would be characteristic of a large cap fund, while a low median market cap would be characteristic of a small-cap fund; monitoring this metric may show whether there has been any style drift in the fund's investing approach. 

Synonyms: Portfolio market cap, Portfolio holdings characteristics, Median market cap

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