Wednesday, October 30, 2013

Les Jeux Sont Faits

On 31 October 2013, I closed the books on a small partnership venture started 3 years ago. Due to a series of fortunate events and good timing, audited performance figures for the venture have exceeded all initial expectations.

First year: 25.6%
Second year: 22.6%
Third year: 55.3%
Total return for 3 years: 103.5%
CAGR for 3 years: 34.5%

The major caveat I must emphasize is that funds under management are relatively small, plus this three years coincided with a general market uptrend which took the All Ordinaries Index from a starting figure of 4750 on 31 October 2010 to 5420 on 31 October 2013. Despite a one-legged handicap, everyone knows that a rising tide lifts all swimmers.

The partnership venture is now being liquidated, and a new venture will commence on 1 November 2013. To be frank, I really do not feel that it is an ideal time for fresh money in the current environment. Certainly not reassuring if one reexamines the Buffett Thermometer mentioned in my previous posts.

Cest la vie...and as I have twitted earlier today, Les Jeux Sont Faits.

My parting thought today to my readers:

"1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024"


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