by admin | Jan 30, 2025 | Investment Performance Guy, News
By now you’re aware of Washington’s funding of Solyndra, the now bankrupt energy company that received something north of a half billion dollars in government loans. In Wednesday’s WSJ, Deborah Solomon had an article (“Solyndra Said to Have...
by admin | Jan 24, 2025 | Investment Performance Guy, News
At the core of performance measurement is the rate of return. While we are often distracted by attribution, risk, and the Global Investment Performance Standards (GIPS(R)), the ROR is fundamental. And so, there are some key points we should agree on. 1. Use...
by admin | Jan 4, 2025 | money-weighting, time-weighting
When teaching our Fundamentals of Investment Performance course, when writing my books, and often when simply having conversations with clients, I am often faced with the task of explaining, in as clear a manner as possible, the differences between time and money...
by admin | Jan 1, 2025 | CIPM, CIPM expert, IRR calculation, money-weighted return, TI BA II Plus
A CIPM Expert Level candidate sent me the following question, asking what are the proper keystrokes to obtain the solution: The Millers deposited $50,000 into their account on 1 May 2005 and another $40,000 on 1 July 2005. The portfolio also received and reinvested...
by admin | Dec 28, 2024 | GIPS, Global Investment Performance Standards, risk, risk-adjusted return, Sharpe ratio, Standard Deviation
Standard deviation is a much misunderstood measure, in spite of its common use. First, is it a risk measure? It depends on who you ask. It’s evident that Nobel Laureate Bill Sharpe considers it to be one, since it serves this purpose in his eponymous...
