Portfolio management refers to the strategic process of overseeing an individual's or organization's investment portfolio to achieve specific financial objectives efficiently. It involves the selection, optimization, and maintenance of a diversified set of investments to balance risk and return (Roman D et al., 2008). Effective portfolio management requires a comprehensive understanding of financial markets, investment instruments, and risk management techniques to maximize returns while minimizing potential losses (Fern GMández et al., 2017). By actively monitoring and adjusting the composition of investments in response to changing market conditions and financial goals, portfolio managers can optimize performance and adapt to market fluctuations (Roman D et al., 2008). The evaluation of portfolio managers' performance hinges on their ability to effectively allocate resources, generate returns, and manage risks in alignment with client or organizational objectives . Through the systematic analysis of portfolio performance metrics and key performance indicators (Fern GMández et al., 2017), portfolio managers can demonstrate their value in achieving financial success and meeting stakeholders' expectations .

Portfolio managers play a pivotal role in shaping investment strategies, particularly in the realm of impact investing. As family offices consider venturing into impact investing, portfolio managers serve as key advisors, guiding them through the complexities of aligning financial goals with social and environmental impact. According to (N/A, 2014), it is essential for family offices to assess if impact investing aligns with their unique needs and values. Additionally, the Mainstreaming Impact Investing Initiative underscores the significance of asset owners and intermediaries in overcoming operational constraints and implementing impactful investment practices (Hernandez A et al., 2013). Portfolio managers hold the responsibility of curating investment portfolios that not only maximize financial returns but also resonate with the values and objectives of their clients. Their expertise in assessing risk, managing diversification, and identifying impactful opportunities is crucial in driving successful investment outcomes that align with the overarching goals of both families and institutional investors.

Performance evaluation plays a pivotal role in assessing the effectiveness and efficiency of individuals within an organization, particularly in the context of portfolio managers. The importance of performance evaluation lies in its ability to provide valuable insights into the achievements and shortcomings of employees, ultimately contributing to the enhancement of organizational outcomes. By utilizing key performance indicators (KPIs) and strategic targets, as highlighted in (Ambarwati et al., 2018), institutions can effectively measure and monitor the performance of individuals against set criteria. Furthermore, in sectors like finance where precision and accuracy are paramount, performance evaluation aids in identifying top-performing individuals, as seen in the comparison of automated carotid intima-media thickness (IMT) measurement techniques in (Nicolaides A et al., 2012). Through rigorous evaluation and feedback mechanisms, organizations can not only incentivize improved performance through rewards and coaching but also detect areas for improvement and implement necessary strategies for ongoing growth and development.

The evolution of performance metrics in various domains, from enterprise performance measurement to animal vocalization studies, showcases a dynamic landscape shaped by the quest for more refined and encompassing measurement systems. In enterprise contexts, the focus has shifted towards selecting the right metrics, establishing comprehensive measurement frameworks, and utilizing metrics for effective decision-making (Blackburn et al., 2009). Similarly, in animal behavior studies, the traditional metric of vocal deviation has been supplemented by a novel index, "frequency excursion," which captures nuances overlooked by conventional measures, thereby offering a more nuanced understanding of vocal performance across species (Goodwin et al., 2016). These advancements underscore the ongoing quest for more nuanced and encompassing performance metrics that can shed light on intricate aspects of performance evaluation across diverse fields.

In the evolution of evaluation techniques for portfolio managers, certain key figures have significantly contributed to shaping the field. One such influence stems from the thorough analysis of financial profitability and shareholder requirements in investment strategies, as highlighted in (Guy Y, 2010). This emphasis on shareholder value and financial constraints underscores the complexities inherent in investment decisions within a financialized context. Additionally, the exploration of stochastic dominance, as discussed in (Roman D et al., 2008), has provided valuable insights into comparing the risk and return profiles of different investment options, informing decision-making processes. Moreover, the validation of key performance indicators (KPIs) in project management, as elucidated in (Fern GMández et al., 2017), has underscored the importance of standardized metrics for monitoring project success and performance. These contributions collectively reflect the diverse perspectives and methodologies that have shaped the development of evaluation techniques essential for portfolio managers' effectiveness and informed decision-making in contemporary financial landscapes.

Over time, the landscape of investment philosophies has undergone significant shifts, reflecting changing economic environments and evolving market dynamics. Initially rooted in traditional theories such as Modern Portfolio Theory, which focused on the efficient frontier and risk-return tradeoff, these philosophies have progressed towards more nuanced approaches like Post Modern Portfolio Theory. The evolution highlights a departure from classical notions of portfolio construction towards a more dynamic and comprehensive understanding of risk management and decision-making under uncertainty. As investors seek to optimize their portfolios and adapt to increasingly complex financial markets, the transition towards alternative risk measures and decision frameworks becomes imperative. The incorporation of stochastic dominance concepts further enriches the discourse, offering a sophisticated perspective on risk evaluation and investment strategy optimization . These shifts underscore the continuous quest for innovative methodologies that align with contemporary investment practices and the quest for superior portfolio performance .

Assessing risk-adjusted returns is a critical aspect of evaluating the performance of portfolio managers. By considering not only the returns generated by the portfolio but also the level of risk taken to achieve those returns, investors can gain a more comprehensive understanding of the manager's effectiveness in managing investment risks. Risk-adjusted returns provide a valuable metric for comparing different portfolios or managers on an equal footing, taking into account the variability and uncertainty associated with investment outcomes. Metrics like the Sharpe ratio and the Treynor ratio are commonly used to assess risk-adjusted returns, providing insights into how well a portfolio has performed relative to the level of risk assumed . These measures offer a balanced perspective by considering both risk and return in a single metric, allowing investors to make more informed decisions regarding portfolio allocation and manager selection .