when evaluating an investment manager it is best to consider the down market capture ratio too this ratio is calculated in the same way except using down market returns once both measures are known a comparison may reveal that a manager with a large down market ratio or poor up market ratio still outperforms the market 
the market capture ratios of passive index funds should be very close to 100 example of how to use the up market capture ratioif the down market ratio is 110 but the up market ratio is 140 then the manager has been able to compensate for the poor down market performance with strong up market performance you can quantify this by dividing the up market ratio by the down market ratio to get the overall capture ratio in our example dividing 140 by 110 gives an overall capture ratio of 1 27 indicating the up market performance more than offsets the down market performance the same is true if the manager performs better in down markets than up markets if the up market ratio is only 90 but the down market ratio is 70 then the overall capture ratio is 1 29 indicating that the manager is outperforming the market overall 