Portfolio Performance Evaluation reviews the academic literature on evaluating portfolio performance, focusing on professionally managed investment portfolios. Recent years have witnessed an explosion of new methods for performance evaluation and new evidence on the subject. Portfolio Performance Evaluation provides a selective review of the methods for measuring portfolio performance and the evidence on the performance of professionally managed investment portfolios. There is also a discussion of hedge funds presenting unique challenges for measuring risk adjusted performance and for interpreting performance measures. Portfolio Performance Evaluation summarizes the historical evidence on the performance of mutual funds and hedge funds using actual data.