Tuesday, November 03, 2009

Moominvalley October 2009 Report

This report is based on the available data as a couple of funds as usual won't report till near the end of the month. As usual everything is in US Dollars unless otherwise stated. There are some numbers I still can't reconcile and I can't see where my mistake is but here is the report anyway.

After a strong rally for stocks globally for the last 6 months, October saw losses in World equity indices. The MSCI World Index lost 1.53% in USD terms and the SPX lost 1.98%. But the Australian Dollar continued to appreciate, this time gaining by about 3 US cents. This meant that we gained 0.78% in USD terms but lost 2.93% in AUD terms and 2.09% in currency neutral terms. So we beat the market by more than 2 percentage points.

Our spending was pretty normal at $3,896 ($A4,252):

Almost half our monthly spending is going to rent ($A1,955 and $A1,988 from this month). Net worth reached $392k ($A428k), which is a decline in AUD terms. Asset allocation moved slightly towards our target with the biggest gain in Australian small cap stocks (now above target):

The following is estimated performances for this month (net of forex movements) by asset class:

Only Australian small caps had a positive performance. The above market returns this month boosted estimated alpha and reduced estimated beta. Alpha measured against the USD MSCI was 7.6% with a beta of 1.24 currently. Beta remains very high and will have to come down at some point. Performance in AUD terms is similar.

After record falls in net worth we are now seeing a record gain for the last 12 months:

The gap between earning and spending computed in this way is the gain in net worth. In terms of investment returns, total return is back to the levels of early 2005:

Accumulation index is Australian lingo for "total return index" in American. Net worth is back at mid 2006 (or mid 2008) levels:

Retirement accounts are near the all time highs, non-retirement accounts (medium term balance) have not rebounded as well. That is where the trading losses were concentrated.

I think that's enough charts for this time :)


Anonymous said...

interesting - i haven't been to your blog for a while and i'm noticing that you have a chunk of your money in a hedge fund now. do you have a post that talks about that? ie. what was the decision making process, what are your expectations for growth, what style does the fund use, etc?

mOOm said...

Check the topic "Hedge Funds" and I have posts on this here and there. I label as hedge fund any fund that uses hedging strategies. I think I'll follow up with a post on this topic.