αc Compound Portfolio III
A buy-and-hold portfolio consisting of a number of stable companies with high long-term growth.
31 December 2008 – 29 July 2021
Compare with
S&P 500 (US Large Cap) (SP500.X)
Performance
- Annualized Return
-
38.04%αc Compound Portfolio III
-
15.66%S&P 500 (US Large Cap)
- Sharpe Ratio
-
1.69αc Compound Portfolio III
-
0.9S&P 500 (US Large Cap)
- Maximum Drawdown
-
-32.36%αc Compound Portfolio III
-
-33.7%S&P 500 (US Large Cap)
Metrics
| Metric | αc Compound Portfolio III | S&P 500 (US Large Cap) |
|---|---|---|
| Initial Balance | $10,000 | $10,000 |
| Final Balance | $577,653 | $62,407 |
| Returns | ||
| Month-To-Date | 4.02% | 2.94% |
| Year-To-Date | 14.96% | 18.25% |
| 3M | 6.36% | 5.54% |
| 6M | 14.32% | 15.19% |
| Annualized Return (1Y) | 35.05% | 38.8% |
| Annualized Return (3Y) | 32.62% | 18.13% |
| Annualized Return (5Y) | 38.67% | 17.33% |
| Annualized Return (10Y) | 36.15% | 15.16% |
| Annualized Return (All) | 38.04% | 15.66% |
| Enh Ann Return | 34.87% | 14.63% |
| Best Year | 77.16% | 32.31% |
| Worst Year | 0% | -4.56% |
| Risk | ||
| Annual Volatility | 20.4% | 18.02% |
| Max Drawdown | -32.36% | -33.7% |
| Sharpe Ratio | 1.69 | 0.9 |
| Sortino Ratio | 2.45 | 1.26 |
| Enhanced Sortino | 2.87 | 1.64 |
- 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 2008.
- 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 13 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 III | S&P 500 (US Large Cap) | Won |
|---|---|---|---|
| 2008 | 0% | 0% | = |
| 2009 | 71.64% | 26.37% | |
| 2010 | 30.84% | 15.06% | |
| 2011 | 11.63% | 1.89% | |
| 2012 | 41.24% | 15.99% | |
| 2013 | 77.16% | 32.31% | |
| 2014 | 18.03% | 13.46% | |
| 2015 | 35.65% | 1.25% | |
| 2016 | 28.75% | 12% | |
| 2017 | 40.65% | 21.7% | |
| 2018 | 15.38% | -4.56% | |
| 2019 | 59.78% | 31.22% | |
| 2020 | 49.88% | 18.37% | |
| 2021 | 14.96% | 18.25% |
αc Compound Portfolio III had 13 positive years and 0 negative years. That's a positive ratio of 100%.
S&P 500 (US Large Cap) had 12 positive years and 1 negative years. That's a positive ratio of 92%.
αc Compound Portfolio III had a better yearly return 92% 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| 2009 | -5.4% | 0.4% | 12.9% | 13% | 3% | 2% | 11.7% | 2.2% | 6.5% | 1.7% | 4% | 4.6% | 57.1% |
| 2010 | -0.8% | 1% | 8.2% | 5.4% | -5.5% | -5.5% | 1.6% | -0.4% | 12.3% | 5% | 5.4% | 1.8% | 28.5% |
| 2011 | 8.8% | 1.7% | 0.9% | 3.1% | 1.8% | -2.5% | 2.7% | -3.3% | -9.8% | 8.7% | 0.7% | -0.2% | 13.8% |
| 2012 | 15.2% | 5.9% | 4.1% | -1.7% | -3.9% | 4.8% | -0.4% | 7.2% | 1.7% | -0.6% | 4.9% | -0.6% | 35.7% |
| 2013 | 12.4% | 3.9% | 5.9% | 1.5% | 3.3% | -0.1% | 3.9% | 2.9% | 7% | 8.1% | 7.3% | 3.2% | 58.5% |
| 2014 | -0.9% | 4.4% | -0.4% | -0.5% | 3.9% | 0.7% | 0.4% | 6.7% | -2.3% | 5% | 1.1% | -1.1% | 17.6% |
| 2015 | 1.4% | 8% | -2% | 5.6% | 3.8% | -0.7% | 7.3% | -2.5% | -3% | 10.9% | 5.3% | -2.1% | 32.2% |
| 2016 | -7.6% | 0.6% | 6.2% | -0.3% | 7.7% | -2.5% | 8% | 1.7% | 2.8% | 1.1% | 5.4% | 3.2% | 26.6% |
| 2017 | 1.7% | 4% | 1.7% | 1.8% | 5.5% | -0.5% | 6.9% | 2.2% | 5.4% | 6.4% | 0.1% | -0.3% | 34.8% |
| 2018 | 9.9% | 2.3% | -0% | 3.4% | 8.1% | 3.3% | 3.7% | 7.2% | 1% | -11.4% | -1.7% | -9% | 16.7% |
| 2019 | 12% | 5.1% | 3.7% | 5.4% | -7% | 7.8% | 3.3% | 1.8% | -1.5% | 6.5% | 6.9% | 5.1% | 48.2% |
| 2020 | 4.8% | -3.1% | -7.9% | 12.2% | 10.1% | 7.8% | 5.9% | 7.5% | -3.6% | -4.2% | 10.2% | 3.7% | 47.7% |
| 2021 | -3.2% | 0.9% | 2.9% | 6.5% | -1.3% | 4.5% | 4% | 0% | 0% | 0% | 0% | 0% | 14.7% |
| Pos | 61.5% | 92.3% | 69.2% | 76.9% | 69.2% | 53.8% | 92.3% | 75% | 58.3% | 75% | 91.7% | 50% | 100% |
| Avg | 3.7% | 2.7% | 2.8% | 4.3% | 2.3% | 1.5% | 4.5% | 2.8% | 1.4% | 3.1% | 4.1% | 0.7% | 33.2% |
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 III
| start | valley | end | Drawdown | days |
|---|---|---|---|---|
| 2020-02-20 | 2020-03-18 | 2020-06-03 | -32.36% | 104 |
| 2018-10-01 | 2018-12-24 | 2019-04-22 | -26.75% | 203 |
| 2015-12-07 | 2016-02-11 | 2016-05-24 | -17.58% | 169 |
| 2011-07-08 | 2011-10-03 | 2012-01-10 | -16.08% | 186 |
| 2010-04-27 | 2010-07-02 | 2010-10-21 | -14.74% | 177 |
The αc Compound Portfolio III took approximately 6 months on average to recover from a major drawdown.
S&P 500 (US Large Cap)
| start | valley | end | Drawdown | days |
|---|---|---|---|---|
| 2020-02-20 | 2020-03-23 | 2020-08-10 | -33.7% | 172 |
| 2009-01-07 | 2009-03-09 | 2009-05-08 | -27.13% | 121 |
| 2018-09-21 | 2018-12-24 | 2019-04-12 | -19.34% | 203 |
| 2011-05-02 | 2011-10-03 | 2012-02-03 | -18.61% | 277 |
| 2010-04-26 | 2010-07-02 | 2010-11-04 | -15.7% | 192 |
The S&P 500 (US Large Cap) took approximately 6 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.