αc Compound Portfolio I

A buy-and-hold portfolio consisting of a number of stable companies with high long-term growth.
31 December 2007  –  29 July 2021
Compare with
S&P 500 (US Large Cap) (SP500.X)

Performance

Annualized Return
21.7%
αc Compound Portfolio I
10.63%
S&P 500 (US Large Cap)
Sharpe Ratio
1.18
αc Compound Portfolio I
0.59
S&P 500 (US Large Cap)
Maximum Drawdown
-38.24%
αc Compound Portfolio I
-52.3%
S&P 500 (US Large Cap)

Metrics

Metric αc Compound Portfolio I S&P 500 (US Large Cap)
Initial Balance $10,000 $10,000
Final Balance $144,066 $39,437
Returns
Month-To-Date 1.56% 2.94%
Year-To-Date 16.41% 18.25%
3M 1.29% 5.54%
6M 16.89% 15.19%
Annual Return (1Y) 38.61% 38.8%
Annual Return (3Y) 18.02% 18.13%
Annual Return (5Y) 20.71% 17.33%
Annual Return (10Y) 24.13% 15.16%
Annual Return (All) 21.7% 10.63%
Enh Ann Return 20.47% 13.15%
Best Year 44.86% 32.31%
Worst Year -6.42% -36.81%
Risk
Annual Volatility 18.03% 20.67%
Max Drawdown -38.24% -52.3%
Sharpe Ratio 1.18 0.59
Sortino Ratio 1.7 0.83
Enhanced Sortino 2.68 1.55

  • Initial balance: The amount of starting capital used to invest in the asset or portfolio. In this case, we're starting with a $10,000 investment on December 2007.
  • Final balance: The amount of capital we've accrued over time as of July 2021.
  • Annual return: Also known as annualized return, or CAGR (Compound Annual Growth Rate), measures how much an investment has increased on average each year, during a specific time period. The time period in this case is approximately 14 year(s). Even a small difference in return can have a big impact on the final balance over a long period of time.
  • Annual volatility: Basically indicates how much, in percentage points, the investment can deviate from its annual return, under most circumstances. An investment with an annual return of 5% and an annual volatility of 10% would indicate returns from approximately -5% to 15% most of the time. A lower volatility is usually preferred to ensure more steady returns over time.
  • Best year: The best performance attained over its lifetime in a given year.
  • Worst year: The worst performance undergone over its lifetime in a given year.
  • Max drawdown: The largest percentage drop from a peak to a trough of an asset or portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
  • Sharpe Ratio: The Sharpe ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. A Sharpe Ratio above 1 is considered good.
  • Sortino Ratio: The Sortino Ratio is a variation of the Sharpe ratio that only penalizes the investment for negative volatility/outcomes, and not for positive volatility. A Sortino Ratio above 1 is considered good.

Chart

Table

Year αc Compound Portfolio I S&P 500 (US Large Cap) Won
2007 0% 0%  =
2008 -6.42% -36.81%
2009 21.02% 26.37%
2010 25.5% 15.06%
2011 24.35% 1.89%
2012 27.74% 15.99%
2013 44.86% 32.31%
2014 36.4% 13.46%
2015 14.01% 1.25%
2016 17.83% 12%
2017 23.96% 21.7%
2018 9.58% -4.56%
2019 43.1% 31.22%
2020 6.27% 18.37%
2021 16.41% 18.25%

αc Compound Portfolio I had 13 positive years and 1 negative years. That's a positive ratio of 93%.

S&P 500 (US Large Cap) had 12 positive years and 2 negative years. That's a positive ratio of 86%.

αc Compound Portfolio I had a better yearly return 79% of the time compared to S&P 500 (US Large Cap).

Table

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2007 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
2008 -1.2% -4.8% -1.4% 5.5% 2.6% -8.8% 5.9% 0% 4.5% -10.7% 1.3% 2.3% -3.5%
2009 -8.1% -10.5% 7.5% 8.6% 0.8% -1.5% 5.1% 8.7% 6% -3.6% 1.7% 6.8% 21.3%
2010 1.9% 3.1% 6.7% 1.1% -6.4% 1.6% 2.9% 0.3% 4.8% 2.1% 0.8% 4.5% 23.7%
2011 2.6% 5.6% 4.2% 1.6% -0% 1.6% 0.9% 0.4% -4.7% 6.8% 1.5% 2% 23.7%
2012 5.3% 6.4% -1.1% 3.6% -3.6% 4.8% -2.5% 4.9% 2.4% 2.6% 0.6% 1.9% 25.3%
2013 3.8% 4.9% 4.3% 0.9% 4.9% -0.2% 3.1% 1.7% 3.1% 4.9% 0.6% 5.8% 37.7%
2014 1.6% 5.3% 5.1% -3.2% 2.2% 3.6% -1.9% 5.7% 0.1% 5.6% 6.4% 1.4% 31.7%
2015 1.6% 6% 3.6% -1% 1.8% -1.2% 5.6% -3.1% -3.5% 2.6% 2% -0.7% 14.2%
2016 -2.3% 2.4% 1.7% -0.8% 5% 0.4% 3.6% 4.2% 1% -0.5% 2% -0% 17.4%
2017 -4% 6.4% -2.8% 3% 2.6% -1.6% 3.8% 5.1% 0.8% 6% 4.6% -1.6% 22.1%
2018 6.4% -2.8% 2.6% 3.1% 5.1% 0.3% 3.1% 1.7% 1.3% -8% 3.3% -5.8% 10.6%
2019 8.7% 7% 0.7% 5.3% -5.3% 8.6% 0.4% 5.3% 0.7% 0.1% 6.5% -0.5% 36.8%
2020 6.1% -6.7% -19.5% 3.4% 10.4% -3.2% 2% 3.4% -2.5% -4% 19.1% 2.7% 12.4%
2021 -3.5% 6.4% 6.5% 5.1% 0.2% -0.4% 1.6% 0% 0% 0% 0% 0% 15.8%
Pos 64.3% 71.4% 71.4% 78.6% 71.4% 50% 85.7% 92.3% 76.9% 61.5% 100% 61.5% 92.9%
Avg 1.3% 2% 1.3% 2.6% 1.4% 0.3% 2.4% 3% 1.1% 0.3% 3.9% 1.4% 20.6%

Drawdown Periods

Simply said, a drawdown is the "pain" period experienced by an investor between a peak (new highs) and subsequent valley (a low point before moving higher). In the table below are the fifth largest drawdowns encountered for the portfolios/assets in question.

αc Compound Portfolio I

start valley end Drawdown days
2020-02-14 2020-03-18 2021-02-16 -38.24% 368
2008-09-22 2009-03-09 2009-08-24 -29.34% 336
2018-09-19 2018-12-24 2019-02-12 -16.24% 146
2008-01-03 2008-03-17 2008-05-30 -11.7% 148
2015-07-30 2016-02-09 2016-05-25 -11.52% 300

The αc Compound Portfolio I took approximately 9 months on average to recover from a major drawdown.

S&P 500 (US Large Cap)

start valley end Drawdown days
2008-01-02 2009-03-09 2011-04-29 -52.3% 1213
2020-02-20 2020-03-23 2020-08-10 -33.7% 172
2018-09-21 2018-12-24 2019-04-12 -19.34% 203
2011-05-02 2011-10-03 2012-02-03 -18.61% 277
2015-07-21 2016-02-11 2016-04-18 -13.02% 272

The S&P 500 (US Large Cap) took approximately 14 months on average to recover from a major drawdown.

Underwater plot

The underwater plot shows you the drawdown periods on a chart. Whereas the performance chart usually gives you a positive viewpoint, the underwater plot gives you a pessimistic viewpoint. It helps you to visualize downtrends that occurred and how long it took for the portfolio's value to rebound to hit a new high after suffering a loss.