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
1.69
αc Compound Portfolio III
0.9
S&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%
Annual Return (1Y) 35.05% 38.8%
Annual Return (3Y) 32.62% 18.13%
Annual Return (5Y) 38.67% 17.33%
Annual Return (10Y) 36.15% 15.16%
Annual 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.