Measuring performance | Spoke Fund ®

Measuring performance36

	trond24	0
	Hi guys, Something occurred to me on the flight home. We spoke in passing at FundLaunch about benchmarks, and it seemed like the S&P 500 was the group choice #1. I had asked about perhaps using other indices in combination with the S&P 500, butupon reflection I'm not sure any of these are really a good choice. Why? Because they are each a passive index. Since we are typically much more focused / less diversified AND actively managed, it seems to me like we are not AT ALL truly measuring ourselves against a benchmark that makes sense. Besides using the wrong target, I wonder if this would lead to any disclosure-related problems? If a small cap tech fund used the S&P 500 as it's benchmark, I think we'd all feel that was "odd". I get the same odd feeling here. Any thoughts? Thanks! (and once again, Cale, thanks for putting on the Spoke Fund Conference! GREAT to meet you all.) Regards, Trond
	Sat, Sep 17 '11 at 11:28AM EDT	Post 1 • IP

	plandfreedom	0
	I feel that SPY is a benchmark that most people are familiar with and is not a bad gauge for performance, even if your securities mix is different. One thing I will throw in is that sometimes you can underperform SPY but outperform on a risk-adjusted basis (relative to Beta)...
	Mon, Oct 10 '11 at 8:24PM EDT	Post 2 • IP

	trond24	0
	Great point about risk adjusted... but I'd prefer to just beat it outright. :-) I'm kind of obsessing about the benchmark, probably because I'm in the last week of studying all the S-65 crap and they hammer on disclosure. I'm probably going to compare to S&P 500 and the Russell 2000 Value Index. I like the 2000 because it includes a relatively big segment of smaller and mid caps.
	Tue, Oct 11 '11 at 7:55PM EDT	Post 3 • IP

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