Portfolio Total Active Return

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