by admin | Jun 30, 2011 | benchmarks
Some folks in a Linkedin group I’m a member of have been discussing the challenge of dealing with hurdle rates when calculating returns. As I showed in a December 2010 newsletter, you cannot compound these rates, as their rate of compounding is proportional with...
by admin | Jun 29, 2011 | IRR, money-weighting, time-weighting
“Men have had recourse to many calculations”Ecclesiastes 7: 29What’s the interpretation of this line? Sadly, my bible doesn’t reference which return formulas the writer was referring to, but one with an open mind can conjecture that it’s...
by admin | Jun 28, 2011 | Investment Performance Guy, News
For today’s post I’m taking a different tact, and presenting a situation we’re facing this week, to see what ideas you can provide. I’m visiting two clients in Boston over a three-day period, and then a third in Chicago. Here’s my...
by admin | Jun 23, 2011 | benchmarks
A Wall Street Journal article spoke about high school graduating students who are “saddled” with being declared “most likely to succeed.” One such individual who earned this title stated that she has “been constantly evaluating [her]...
by admin | Jun 21, 2011 | error correction, GIPS, Global Investment Performance Standards
GIPS(R) (Global Investment Performance Standards) compliant firms are now required to have an error correction policy. This calls for firms to establish rules for materiality, something many struggle with from a definitional perspective.The CFA Institute’s...