Skew – This statistic represents the shape of the fund’s distribution around the mean. A negative skewness measure indicates that the distribution is skewed to the left – (i.e. compared to the right tail, the left one is elongated.) The opposite conclusion is drawn in the case of positive values.
Investors who are required to select and monitor investment managers should develop a basic understanding of investment statistics. Quantitative tools can provide you with good insight that you can use in your qualitative interviews with managers and when monitoring your investments.