[Verse 1]
When Sharpe ratio tells just half the tale
Of hedge fund victories and where they fail
There's deeper metrics hiding in the math
To chart a clearer analytical path
Sortino steps beyond the basic frame
By targeting downside risk in the game
[Chorus]
Sort-ino sorts the bad from good returns
Draw-down shows where portfolio burns
App-raisal tells if skill beats the market's dance
Performance metrics give the full expanse
Beyond the Sharpe, there's more to learn
Sort-ino, drawdown, skills that earn
[Verse 2]
Standard deviation counts both up and down
But investors fear the losses, not the crown
Sortino ratio takes a sharper view
Dividing excess returns by downside's clue
Only negative variance gets the blame
Smart measurement for the portfolio game
[Chorus]
Sort-ino sorts the bad from good returns
Draw-down shows where portfolio burns
App-raisal tells if skill beats the market's dance
Performance metrics give the full expanse
Beyond the Sharpe, there's more to learn
Sort-ino, drawdown, skills that earn
[Verse 3]
Maximum drawdown tracks the steepest fall
From peak to trough, it measures worst of all
Recovery time tells how long to heal
When portfolios face losses cold and real
Duration matters just as much as depth
Measuring resilience with every breath
[Bridge]
Appraisal ratio breaks it down precise
Alpha earned per tracking error's price
Information ratio's cousin in the field
Shows manager skill that benchmarks yield
Dividing alpha by specific risk
Reveals if talent's worth the trading disk
[Chorus]
Sort-ino sorts the bad from good returns
Draw-down shows where portfolio burns
App-raisal tells if skill beats the market's dance
Performance metrics give the full expanse
Beyond the Sharpe, there's more to learn
Sort-ino, drawdown, skills that earn
[Outro]
Three pillars standing strong and true
Sortino, drawdown, appraisal too
Measuring funds with precision's art
Performance metrics set apart