The Spaulding Group
Call Now: 732-873-5700
Menu
  • GIPS
    • What Our Clients Say
    • GIPS 101
    • What is GIPS Verification?
    • GIPS Support/Pre-Verification
    • GIPS Verification Services
    • Non-GIPS Verification
    • GIPS For Asset Owners
    • Can OCIOs Be GIPS Compliant
  • Services
    • Consulting
      • Technology Consulting
      • Operations Review
    • Training
      • Fundamentals of Investment Performance Measurement
      • Performance Measurement Attribution
      • GIPS Workshop
      • In-House/Custom Training
      • Portfolio Risk Class
      • Performance Measurement for the Non-Performance Professional
      • PERFORMANCE MEASUREMENT FOR ASSET OWNERS AND CONSULTANTS
    • Software Certification
    • Vendor Support
      • Marketing Support
      • System Consulting
    • Publishing
    • Research
  • Products
    • The Journal
      • Media Kit
      • Article Submissions
      • Past Articles of The Journal of Performance Measurement
      • Dietz Award Winners
  • Conferences and Forums
    • Conferences
      • Virtual PMAR Web-Conference
      • PMAR North America
      • PMAR Europe
      • PMAR West
      • Performance Jeopardy Champions
      • Web Conferences
    • Performance Measurement Forum
    • Asset Owner Roundtable
  • Investment Performance Guy Blog
    • CIPM Tips & Tricks
    • Resource Center
  • About Us
    • TSG In The News
    • The Company
    • Awards and Recognition
    • Our Story
    • Careers
  • Contact
  • GIPS
    • What Our Clients Say
    • GIPS 101
    • What is GIPS Verification?
    • GIPS Support/Pre-Verification
    • GIPS Verification Services
    • Non-GIPS Verification
    • GIPS For Asset Owners
    • Can OCIOs Be GIPS Compliant
  • Services
    • Consulting
      • Technology Consulting
      • Operations Review
    • Training
      • Fundamentals of Investment Performance Measurement
      • Performance Measurement Attribution
      • GIPS Workshop
      • In-House/Custom Training
      • Portfolio Risk Class
      • Performance Measurement for the Non-Performance Professional
      • PERFORMANCE MEASUREMENT FOR ASSET OWNERS AND CONSULTANTS
    • Software Certification
    • Vendor Support
      • Marketing Support
      • System Consulting
    • Publishing
    • Research
  • Products
    • The Journal
      • Media Kit
      • Article Submissions
      • Past Articles of The Journal of Performance Measurement
      • Dietz Award Winners
  • Conferences and Forums
    • Conferences
      • Virtual PMAR Web-Conference
      • PMAR North America
      • PMAR Europe
      • PMAR West
      • Performance Jeopardy Champions
      • Web Conferences
    • Performance Measurement Forum
    • Asset Owner Roundtable
  • Investment Performance Guy Blog
    • CIPM Tips & Tricks
    • Resource Center
  • About Us
    • TSG In The News
    • The Company
    • Awards and Recognition
    • Our Story
    • Careers
  • Contact
Search the site...
Home» Product » The Case Against Time-Weighted Return for Alternative Investments

The Case Against Time-Weighted Return for Alternative Investments

Posted by spaulding - January 5, 2018 -
0

$25.00

The Case Against Time-Weighted Return for Alternative Investments

Timothy F. Peterson, CFA, CAIA, CIPM, Cane Island Alternative Investors

This article explains why the adoption of a time-weighted rate of return methodology as a performance measure for illiquid, private investments is misguided. The increased adoption of time-weighted return for illiquid alternatives is the result of greater awareness of, and adherence to, several industry reporting standards, as well as a general increase in portfolio allocations to illiquid alternative investments.

Category: Articles
  • Description

Description

The Case Against Time-Weighted Return for Alternative Investments

Timothy F. Peterson, CFA, CAIA, CIPM, Cane Island Alternative Investors

This article explains why the adoption of a time-weighted rate of return methodology as a performance measure for illiquid, private investments is misguided. The increased adoption of time-weighted return for illiquid alternatives is the result of greater awareness of, and adherence to, several industry reporting standards, as well as a general increase in portfolio allocations to illiquid alternative investments. After describing the nature of alternative investments and their strategies, the author adduces six tenets of time-weighted return, each of which is incompatible
with the circumstances and goals of alternative investment performance measurement. Considerable attention is given to the risks inherent in valuing illiquid assets. In an effort to balance theoretical idealism with pragmatic business requirements, the article concludes with a decision framework for reporting combined portfolios of liquid and illiquid investments.

Related products

  • Performance Measurement

    A Comparison of GIPS and the AIMR-PPS

    $5.00
    Add to cart
  • The Journal of Performance Measurement

    A General Framework for the Business Requirements of an Investment Performance Measurement System

    $25.00
    Add to cart
  • “A Call to Arms!” The Next Frontier for Taxable Accounts-After- tax Return Performance Attr

    $25.00
    Add to cart
  • Performance Measurement

    A Modest Proposal to Modernize the Performance Evaluation of Hedge Funds

    $25.00
    Add to cart

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Policy   Terms and Conditions
Copyright 2018-2019. The Spaulding Group.
  • Terms of Use
  • Privacy Policy
  • About Us
  • Contact Us
CFA Institute does not endorse, promote or warrant the accuracy or quality of The Spaulding Group, Inc. GIPS® is a registered trademark owned by CFA Institute.
 
This site uses functional cookies and external scripts to improve your experience. If you continue to browse the site, it indicates you accept our use of cookies.Accept Privacy Policy
Privacy Policy
Necessary
Always Enabled