User talk:Wikideanalt

I have waited over 12 hours for my question to appear on the Talk page and, since it has not, wonder if I forgot to "submit" it. So, here it is again. I assume that any duplication can be fixed by the editor. Sorry!

<< To measure returns net of fees, allow the value of the portfolio to be reduced by the amount of the fees. To calculate returns gross of fees, compensate for them by treating them as an external flow, and exclude accrued fees from valuations.>>

Regarding the last phrase, perhaps I am misreading, but you seem to suggest that the beginning and ending NAVs should each be reduced to the extent that there has been net accrued incentive fees since inception. Are you referring to the amount of carried interest that would be paid to the manager if the portfolio were liquidated at the beginning, or ending, of the period? If so, I believe this is incorrect. Recall that the sole purpose of a TWR is to compare the performance of managers (who are presumed to not control cash flows). TWR is often called the "manager's rate of return" rather than the investor's rate of return. So, you are trying to figure out how well the manager managed the investment - in a way that allows one to compare the manager to another manager who managed a different investment, both with different cash flow experiences. You are not trying to figure out how the investor's wealth grew. For that reason, your MD denominators should reflect the full value of the investment at the beginning of the period that is at work producing the total income (including realized and unrealized gain) in that period. Please address. WikiDeanAlt

Are you in the right place? This is Wikipedia and your question doesn't immediately make any sense. If this refers to a Wikipedia page, please can you quote the page concerned. In general, discussions should be held at the article talk page and not on your own talk page. Regards  Velella  ^{Velella Talk}   17:07, 21 October 2015 (UTC)