This market wizard needs help

Hey genius,

The posted numbers are after fees, this guy has almost a 15% annual return with only a 5% drawdown?! Thats fucking awesome. Beats the s&p and I am sure it blows you out of the water.

5yr


*** The above post is addressed to Businessman who has since rescinded his post
 
The reason fund of funds and other investors like a 15% return and a 5% drawdown is that the investor can lever it up. If you can take a 20% drawdown he can return you 60%, can anyone else say that?

Notice the "Partially funded accounts," he hasn't had huge returns in the past couple years, but for the risk he is taking they are unbelievable, he would still be in Market Wizards if it was written today.
 
The last 5 year performance is dreadful at 21.6% total. You could have put away your money in a long term CD earning 5% and made 27% with absolutely no risk.
 
Quote from MRWSM:

The last 5 year performance is dreadful at 21.6% total. You could have put away your money in a long term CD earning 5% and made 27% with absolutely no risk.
More...


How would you have done in the stock market?
 
If you look at his overall track record, it is pretty impressive. I am interested to see what his returns are compared to market volatility, i.e. he could be up 2% but with only 20% of the volatility: that's impressive, irregardless of the return.
 
Also you guys aren't paying attention to the drawdown, the max was 2.2%, that might as well be zero. He is uncorrlated with every other asset class, never had a down year, and largest drawdown is 4.58% with a 14 year track record.

You guys that bet the house on penny stocks might not think this is very impressive, but professionals will. Its actually one of the better track records I have seen and I will bet that he hasn't lost very many investors over the past 5 yrs. Also, if he follows other managers into old age, and his track record shows it, he has reduced the heat by a lot since 92.

This guy is a pro.
 
His average annual st dev has gone from 11.53 over the 92-99 to 4.20 from 2000-04. Definitely cut the leverage not losing his edge. S&P500 12.37 and 16.31 over the same periods.

Like I said, this guy is a pro.


*** Annual st dev is a measure of volatility, therefore risk
 
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