Should this be the difference with respect to the normal benchmark or the investor’s benchmark?
I = investors benchmark return
M = Managers Benchmark return
P = Portfolio return
Total active Return = P - I
It can also be broken down in as follows:
Total active return = (P - M) + (M - I) = Managers true active return + Managers misfit active return
So to answer your question the total active return is the total return minus the investors benchmark return