Saturday, February 28, 2009
Absolute and Relative Returns by Holding Period
This chart shows the returns for the Strategic Growth model portfolio for the past quarter (13 weeks), 6 months (26 weeks), and 52 weeks ending Friday, February 27th. Over the past year, the portfolio has generated an absolute return of +38.7%, beating the market by +85.5%.
Many fund managers are proud to merely beat the market. A high performing hedge fund should be able to consistently generate positive returns over the full Bull-Bear market cycle. By aligning investment capital with the prevailing market conditions, the Strategic Growth model portfolio has consistently generated positive returns over virtually any holding period greater than 26 weeks since inception.
This chart shows that the model is generating a relatively linear rate-of-growth when measured over successively longer holding periods.