May
- 2022 -
Rate of Return
Inception to Date Rate of Return
Growth and performance of the fund since it's began in October 2018
Rate of Return
Compound Annualized Rate of Return
The return an investor would get compounded annually if they were to continue to be investors in our fund.
Beta
Beta
How much risk a portfolio takes to get their return vs. the S&P 500. A 1 beta is the exact same risk as the market, a 1.3 beta is 30% more risk, and a .25 beta means you only have 25% of the risk as the overall market for the exact same return
Correlation
Correlation
Correlation is the definition of how correlated the fund’s returns are to the overall market. A correlation of 1 means the fund is performing the same as the market, and a correlation of 0 means the exact opposite. A correlation of .5 means that the fund is independently secure regardless of what the market does. which is desirable.
R Square
R Square
R square tells investors how much of our fund’s returns or movements in the return are purely from movements in the overall markets. An R Square of 1 says 100% of our movements are from the markets and 0 means nothing is from the markets. A low R Square is preferable for a low correlation to the market. This is very similar to correlation, but slightly different for more sophisticated investors.
Standard Deviation
Annualized Standard Deviation
Annualized Standard Deviation projects what the total range the fund will be for the year. This metric is useful for investors to know how big of swing their investments may experience.
Drawdown
Max Peak to Valley Drawdown
This is the max drawdown that any current investor of the fund has experienced. A lower drawdown is better because it means more predictable, smaller overall losses, and less volatility for investors. We especially like to use this metric to compare ourselves vs. the overall markets during key periods. For example, Bull & Bear’s max drawdown during Q1 of 2020 was 7% and the markets was ~35%.
Ratio
Sharpe Ratio
Sharpe Ratio measures how of your risk adjusted returns come from active trading vs. other factors that contribute to gains like like movements in the market or luck holding a position. Anything over 1 is considered very good, above 1.5 is amazing, and below 1 is considered average.
