In the dynamic realm of finance and investing, comprehending the behavior of an investment portfolio is essential for making informed choices. Among the array of metrics available, “downside capture” stands out as a crucial measure that unveils a portfolio’s ability to weather market downturns. This metric offers invaluable insights into how well a portfolio or investment strategy performs during periods of market decline, providing a deeper understanding of its potential to protect capital and mitigate losses. Downside capture, often referred to as “down-market capture,” is a statistical tool employed to assess a portfolio’s performance relative to a benchmark index during times of negative market returns. In simpler terms, it measures a portfolio’s effectiveness in minimizing losses when the market is experiencing a downturn. This metric offers investors a unique perspective on the portfolio’s resilience and its capacity to shield against unfavorable market conditions. The computation of downside capture involves comparing the portfolio’s losses during bearish market periods with those of a chosen benchmark index. The formula for calculating downside capture is as follows: Downside Capture = (Portfolio Loss in Down-market / Benchmark Loss in Down-market)