by admin | Sep 22, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM Principles, leveraged return, levered return, performance measurement, rate of return, return contribution, return measurement, use of leverage
Yesterday, I covered return calculation for a portfolio with leverage. To review, the background information is:The investor wants to acquire a 500 million euro property but only has 400 million in cashThe investor borrows 100 million euro in order to acquire...
by admin | Sep 21, 2013 | cash basis return, CIPM, CIPM Exam Tips & Tricks, CIPM Principles, GIPS, levered return, margin return, rate of return, real estate, return measurement, time-weighted return, use of leverage
Leverage can be a confusing topic, so I figured it is worth covering in a few blog posts. In this first post, we’ll deal with return calculations for portfolios that employ leverage.Leverage is the use of borrowing, typically with an intent to amplify...
by admin | Sep 20, 2013 | CIPM, CIPM Exam Tips & Tricks, CIPM expert, CIPM formulae, CIPM formulas, CIPM Principles, estimated time-weighted return, Modified Dietz, Original Dietz, return measurement, time-weighted return, true time-weighted return, TWR
For today’s post, I’d like to review some of the “Dietz-style” formulae we use to calculate true time-weighted return and estimated time-weighted return. I’ve never actually seen the formulae presented this way, but hopefully doing...
by admin | Sep 19, 2013 | Investment Performance Guy, News
Four of us from our company (Chris Spaulding, Jed Schneider, and Steve Sobhi are joining me) are in beautiful Boston for the annual GIPS(R) conference. As we have for roughly the past 15 years, we are sponsoring this event. I didn’t attend last year, and...
by admin | Sep 17, 2013 | Investment Performance Guy, News
Probably sparked by (a) my discovery of the TV show, The Big Bang Theory, and (b) the fairly recent news about the Higgs boson, I recently began reading Leon Lederman’s The God Particle. Mind you, I have JUST begun, but already stumbled upon something...
