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I would like to evaluate the performance of a portfolio mananger.

I know his trades, and the initial portfolio holdings. I do not know, however the amount held on his cash account.

That is, I cannot know whether stocks are bought with cash from previous sales (by completely selling a stock bought before), or with new cash inflows. How could I measure the performance of his portfolio? I woud like to have a CAPM like approach.

Many thanks

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so basically you would like to know whether the manageer might be tweaking the performance by injecting more money ? –  Probilitator Mar 21 at 16:21
    
not necessarily. I would just like to have a good estimate of the portfolio performance of the manager. As do not have the cash account I guess I must make some assumptions. –  Noobie Mar 21 at 16:34
    
@Noobie You need to make an assumption on leverage / cash held, for example by using an average number if that is a fairly stable metrics. For example, if it's a long only strategy, you could consider that the strategy is always 100% invested. –  assylias Mar 21 at 17:57
    
do you have some reference in mind that i could use? –  Noobie Mar 21 at 18:00

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