Average Annual Return...

[canyonman00]

What is a good average annual return for a managed fund? As an unknowledgeable investor, what should be a good fund return in today's environs for both long term retirement type money (for a young investor), as well as stable capital returns (for a seasoned citizen)?

 

[Aaron]

It all depends on the volatility. 10% per year, year in and year out with no volatility is awesome. But if you occasionally have a 30% drawdown, +60% per year, on average, would be a lot better.

Go to www.autumngold.com and look at, for example, the 12 month rankings to see hedge fund returns listed side by side with max drawdowns. (See if you can find the Schindler Fund!)

 

[m22au]

According to Adam Hamilton, the nominal long-term average return on the stockmarket is 7.5%. So if you get anything more than this, you are doing well.

http://www.zealllc.com/commentary/century.htm

 

[DT-waw]

See here: http://iasg.pertrac2000.com/mainframe.asp?
Rank by Annulized Return for the last 60 months.

Everything above 14%/year is good, since you have to pay them 2-4% a year.
Look at this Fund: http://iasg.pertrac2000.com/SnapshotPT.asp?ID=454

 

[praetorian2]

I think that is a bad question. Look at risk adjusted return. It didn't matter if you made 30% a year for the past decade, b/c those growth guys can't play defense. They got hosed and now after 2 straight 50% down years, you have as much as you did in 1990, and you had to pay taxes probably. I know that there are a lot of people on these boards who've had 50%+ years every year. I think that's a satisfactory level of return, and I know it's done with low risk. I wouldn't accept anything under 30-50%, and if I were accepting something that low, I'd want to know how it was done, and about drawdowns. If I were not investing my own money, I'd look to a few of those people on these boards who've had a history of kicking ass in their own hedge funds.

 

[DT-waw]

Originally posted by Aaron

Go to www.autumngold.com and look at, for example, the 12 month rankings to see hedge fund returns listed side by side with max drawdowns. (See if you can find the Schindler Fund!)

Your fund "Shindler Trading - Domestic Private Placement" has very good return +82% in the last 12 months, but small funds under management... only $300k. I wish you more clients, and 80% a year... consistently.
What markets fund trades? Do you combine systematic and discretionary approach?

 

[praetorian2]

Aaron- I didn't want to mention you specifically, but DT beat me to the punch. Aaron is one guy who I'd definately invest with if I weren't doing it on my own.

 

[Aaron]

Thanks, DT-waw and Praetorian2. Yeah, I'll second that -- more clients and a consistent 80% per year.

We trade NQ, FDAX, and ZN (that's Nasdaq, Dax, and t-note futures). 100% systematic. Please don't ask me anything more about our strategies.

While there was only $345k in the Schindler Fund at the end of September, we've got $2.4m under management if you include a couple large separately managed accounts. And that $2.4m is $2.4m more than when I started the Schindler Fund 14 months ago. I'm pleased with our performance and the growth of the company.

 

[Aaron]

Praetorian... Your launch is still on for December?

 

[praetorian2]

Most likely on Jan 1 now. My accountants/lawyers are dragging their asses in getting it all going and blue sky'd.

- Aaron, I want to tell you that every time my father tells me that he doesn't want to sell his crap tech funds, b/c cash earns 1%, I tell him to invest with you. I've sent him your returns a few times. Eventually, I think he will.