Every investor knows that compounding investment returns is
the key to wealth growth. Few investment professionals have been
able to unlock the mystery of successful compounding techniques.
AAC has found that properly matching Managers of securities is the
essence of this mystery.
This chart is intended to graphically illustrate and quantify
the compounding factors of the three Managers and Combinations
thereof, compared to the S&P 500 Index and the U.S. 90 day T-Bill
As can be seen in this chart, each Combination achieves an incremental
compounding factor versus the individual Managers, which is the
inevitable road to superior returns. In the next Exhibit, we shall
show that by reducing drawdowns and the duration of same, compounding
at times is dramatically improved.