Strategy: αc Compound Portfolio Comb

Investment Objective

Aggressive Long-Term Capital Appreciation

Annualized Return

36.8%

Time
Horizon

5+ years

Rebalancing Frequency

N/A

A buy-and-hold portfolio consisting of a number of stable companies with high long-term growth.

About

The portfolio pursues a strategy that seeks to achieve equity-like returns with lower volatility and drawdowns compared to traditional equity through active ETF selection, risk management and diversification. It is thus expected to produce higher risk-adjusted returns than market indexes.

Performance

Portfolio + Compare with Initial Balance Final Balance Annual Return Annual Volatility Best Year Worst Year Max Drawdown Sharpe Ratio Sortino Ratio
$10,000 $419,675 36.8% 19.1% 68.9% 0% -28.6% 1.74 2.53
$10,000 $50,794 14.6% 18.3% 32.3% -4.6% -34.1% 0.84 1.18

  • 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 December 2020.
  • 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 12 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.

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 Comb

Drawdown Peak date Valley date Recovery date Duration
-28.56% 2020-02-19 2020-03-16 2020-05-11 59 days
-25.98% 2018-09-04 2018-12-24 2019-04-25 168 days
-15.89% 2015-12-04 2016-02-11 2016-05-27 126 days
-14.8% 2011-07-07 2011-10-03 2012-01-09 133 days
-14.13% 2009-01-06 2009-03-09 2009-03-26 58 days

The αc Compound Portfolio Comb took approximately 4 months on average to recover from a major drawdown.

S&P 500 (US Large Cap)

Drawdown Peak date Valley date Recovery date Duration
-34.1% 2020-02-19 2020-03-23 2020-08-18 130 days
-27.13% 2009-01-06 2009-03-09 2009-05-08 89 days
-19.35% 2018-09-20 2018-12-24 2019-04-12 147 days
-18.61% 2011-04-29 2011-10-03 2012-02-03 201 days
-15.7% 2010-04-23 2010-07-02 2010-11-04 140 days

The S&P 500 (US Large Cap) took approximately 5 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.

Annual Returns

Monthly Returns

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 - - - - - - - - - - - 0
2009 -5.5% -1.3% 9.3% 13.6% 2.5% 4.4% 8.8% 4.3% 3.6% 0.6% 2.8% 4.7%
2010 -0.9% 1.1% 7.7% 6.5% -4.6% -2.8% 1.2% -1.6% 10.2% 5.2% 4.6% 3%
2011 6.3% 2.5% 1.4% 3.3% 0.9% -1.5% 2% -3.1% -8% 9.7% 1.3% -0.9%
2012 11% 5.6% 5.2% -1% -3.6% 5.1% -1.3% 5.8% 3.9% -0.4% 3.2% 0.6%
2013 10.4% 2.9% 5.1% 0.8% 3.1% 0.7% 5.3% 2.4% 7.9% 6.6% 5.8% 3.1%
2014 -1% 3.2% 0.1% -1.9% 1.9% 1.2% -0.2% 5.5% -1.5% 6.8% 1.3% 0.6%
2015 0 6.2% -0.7% 1% 2.7% 0.2% 5.7% -2.5% -0.2% 8.7% 5.3% -1.6%
2016 -6.9% -0.8% 5.9% 0 6.4% 0 6.4% 2.4% 1.4% 0 6.2% 1.9%
2017 0.6% 4% 2.8% 2.8% 4.2% -0.3% 7.1% 1.6% 6.5% 5.2% 0.2% 0.6%
2018 8.4% 0.5% 2% 4.6% 8.8% 4.3% 2.1% 8.2% -1.3% -9.4% -2.3% -8.5%
2019 10% 6.7% 2.8% 5.6% -4.7% 8.2% 5.8% 2.4% -2.3% 4.1% 5.2% 3.8%
2020 5% -3.1% -4.8% 14.5% 13.5% 8.1% 12.1% -0.4% 0.9% 0.4% 2.5% 0.3%
Pos 63.6% 75% 83.3% 81.8% 75% 72.7% 83.3% 66.7% 58.3% 81.8% 91.7% 75%
Avg 3.4% 2.3% 3.1% 4.5% 2.6% 2.5% 4.6% 2.1% 1.8% 3.4% 3% 0.6%