I love the internal rate of return …

Okay, that’s not a surprise, right? You probably knew that, if you’ve been a reader of or listener to my materials over the years.

In my view, it should be the dominant way to present performance. Yes, time-weighting has value, though it’s quite limited: to tell us how the portfolio manager did, when managing a portfolio they did not control the external cash flows for. But, in cases where the manager controls the flows (e.g., private equity) and to inform the client how they did, IRR rules.

I wanted to express these views in what I hope you’ll find to be an informative and, perhaps even, entertaining video. Please let me know your thoughts!