drawdown

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n. a reduction in the size or presence of a military force: the unit is the first to leave Germany as part of the drawdown.

See the Introduction, Abbreviations and Pronunciation for further details.

The distance by which the groundwater level is lowered as a result of pumping.

The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough.

Investopedia Says:
A drawdown is measured from the time a retrenchment begins to when a new high is reached. This method is used because a valley can't be measured until a new high occurs. Once the new high is reached, the percentage change from the old high to the smallest trough is recorded.

Drawdowns help determine an investment's financial risk. Both the Calmar and Sterling ratios use this metric to compare a security's possible reward to its risk.

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Drawdown has four distinct meanings:

• Drawdown (hydrology), a lowering of a reservoir or a change in hydraulic head in an aquifer, typically due to pumping a well.
• Drawdown (economics), decline in the value of an investment, below its all-time high.
• Drawdown (printing), a test of a particular ink on a particular substrate accomplished by spreading the ink with a spatula
• Drawdown (general), a reduction or decrease
• Drawdown (polymer molding)

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