On Sat, 26 Apr 2008 18:57:02 -0500, "Walter_Slipperman"
<WalterS@[EMAIL PROTECTED]
> wrote:
>
>Here is what he re****ted to us:
>Aug 99 to Dec 99 = 17.34%
>2000 = 4.33%
>2001 = 0.02%
>2002 = -1.39%
>2003 = 15.91%
>2004 = 11.76%
>2005 = 6.28%
>2006 = 13.23%
>2007 = 2.30%
>
>Overall return from 08/16/99 to 04/24/08 is 6.62%.
>
>This does not take into account the taxes that I had to pay when mutual
>funds re****ted capital gains, so the return is even lower. I did not
pull
>money from the ****tfolio to pay those taxes, instead paying them from
>another savings account.
>
>Is this a reasonably well managed ****tolio over this time period? I am
>aware that I asked him to invest this somewhat conservatively so does
this
>seem about right?
>
Assuming he is calculating those numbers correctly, I'd say you're doing
very well. Also, based on the numbers you've posted, I would guess that
the 6.62% is not an "overall" return but rather an annualized return
(6.62%
per year).
Here is a comparison with the S&P 500 Total Return figures during that
time
frame. The Total Return figures includ reinvestment of dividends. I only
have month-end figures, so the S&P 500 TR numbers only go through
3/31/2008:
Walter S&P500 TR
Aug 99 to Dec 99 17.34% 11.18%
2000 4.33% -9.11%
2001 0.02% -11.88%
2002 -1.39% -22.10%
2003 15.91% 28.68%
2004 11.76% 10.88%
2005 6.28% 4.91%
2006 13.23% 15.79%
2007 2.30% 5.49%
1/1/2008 - 3/31/2008 -9.44%
Overall, the S&P500 TR index, from 8/1/1999-3/31/2008 showed a total
return
of 14.87% (and an annualized return of 1.61%)
According to the numbers you've posted, your total return from 8/1/1999 to
12/31/2007 is 92.6% with an annualized return of 8.09%. You only had one
losing year, compared with three losing years for the S&P500 TR.
In addition, your volatility, calculated as the standard deviation of your
returns, is less than that of the S&P 500. So it appears as if he has
brought you better returns than the S&P500 TR Index with less risk.
I would say this return is well worth his fee. Your returns, before
taxes,
were 3-4 times that of the S&P500, over a similar time frame.
--ron
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