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To assess the performance of a fund, we have several quantitative measures, such as (among others) series of past returns, fund volatility, and ratios such as the Sharpe ratio, or more sophisticated ones. As a matter of fact, a fund performance and its related quantitative measures is depending to some extent of the volatility of the markets it is trading. Roughly speaking, a market presenting a low volatility level is not offering much positive return potential, and a (very) high market volatility can lead to either higher profits or higher losses.
To formulate it simply: if a fund has presented attractive performances during a period of low/medium market volatility levels, it should better be able to keep its performance during high market...
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