Glad you like it, & "get" it Jason. The CFA Institute's Benchmark Committee warns against the use of peer groups. But what should we use instead? Performance evaluation is a test of the hypothesis "performance is good." In hypothesis testing lingo, peer groups are samples, and the fact is each sample is different. Callan peer groups are different than Russell are different than Wilshire, etc. What you really want is "perfect information", namely all the possible outcomes from what the manager does. This is achievable today by running portfolio simulations that I call "Portfolio Opportunity Distributions", PODs.