No Java SDK Support for Chart Application.

Click on any one of the individual coloured Drawdown boxes and
you will get the following details of that specific Drawdown; Start date, Valley date,
Drawdown depth, Drawdown length, Recovery date and length to recovery.

COMMENT  

This Exhibit gets to the heart of the Compounding magic, the art of properly combining Managers. It provides a comparative analysis of the 5 largest drawdowns of the Market, the Managers and the Combinations.

Individual Managers which generate superior returns to the Market almost invariably experience deeper peak to trough drawdowns. With the absence of a mitigating strategy, the result is a dual impediment to Compounding:

Those being:

  • the requirements for greater returns than the Market in order to reach the previous peak in value,
  • and, the duration of uncompounding is extended.
 

QUESTIONS  
  • What are the important observations offered by this Exhibit in the light of the foregoing?
  • Which Combination comes out on top?
 

ANSWERS  
  • All three individual Managers had considerably larger average drawdowns than the Market, and yet Combination 1 has slightly lower average drawdowns than the Market and duration of same was considerably lower. Combination 3 experienced an average drawdown of 4.06 percent over and above the S&P 500's.
  • Combination 1 is the winner in respect to this attribute, with an average drawdown depth of 9.52% and completes the drop 27% more quickly than the Market.
 

 
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conclusions