Fund Status for October, 2018

First, please accept our apologies for not producing a public entry for the end of September.  We were busy working on the backend of the web site, getting it ready for public subscribers, and communicated with all of our subscribers via e-mail during this period.

The past two months stunk for the stock market in general. That said, ACCRE as a diversification tool proved its worth. To reflect, in September, the S&P slightly nudged us out (+0.43% return versus – 3.61% for ACCRE) but then the S&P tanked in October (-6.94% versus -2.25% for ACCRE). Cumulatively, ACCRE continues to hold a substantially winning hand. $1 invested in ACCRE at the inception would be worth $1.34 today – not quite as good as the peak in June ($1.43) but certainly much better than the S&P performance over that same period ($1.15). The overall REIT performance has been lackluster ($1.05), showing that the ACCRE managed strategy continues to dominate.

October 2018

Even more telling are the continued results from computing our Sharpe Ratio.  ACCRE continues to dominate the S&P, and the numbers are actually moving in ACCRE’s favor.   Note the comparisons below:

Sharpe Oct 2018

Thus, ACCRE’s average daily excess returns continue to dominate the S&P, and the price paid for those returns, in terms of volatility, continues to decline.  Indeed, thanks to the major market movements in the S&P over the past 2 months, the overall market Sharpe ratio has declined significantly, while ACCRE’s continues to increase.

Finally, we’ve also computed the Beta for ACCRE, based on daily returns since inception versus the S&P, which is 57.85% as of the end of October, 2018.  This is not surprising, given the Sharpe ratio results.  ACCRE continues to dominate the S&P returns, and with lower volatility to boot.

John A. Kilpatrick, Ph.D.

 

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