Baseline Performance Measurement
Baseline performance measurement is the process of setting a starting point for performance and tracking how an investment does against it over time. This baseline should be clear and realistic, reflecting the strategy's goals.
By constantly comparing performance to the baseline, investors can identify trends, see if the strategy is working as expected, and catch problems early. It provides the foundational, objective view of how an investment is evolving, serving as the constant standard that allows for long-term tracking and accountability in all asset management activities, including digital assets.