Saturday, July 26, 2008

'Rising Tide Growth' Performance vs Peers June Update

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Aside from measuring Rising Tide Growth versus market indexes, the past few months we have begun new measures to track performance versus it's peer group, the "mid cap growth" category of mutual funds.

Apr 23: 'Rising Tide Growth' v Mid Cap Growth Mutual Fund Peers
May 9: 'Rising Tide Growth' Performance vs Peers April Update
Jun 23: 'Rising Tide Growth' Performance vs Peers May Update

Note: For newer readers, the Apr 23 post has a detailed methodology breakdown, and is worth the quick read.

This is still not an apples to apples comparison until we hit the July period as that will be the completion of our first year, but as each month passes we get closer to a direct comparison. With June complete we have 11 months of direct comparison and the other 1 month we assume 0% return, to reach a 12 month return (ending June 30, 2008).

Our general big picture goals once live is to try to finish in the top 10% of our category most years - that would place us at the very top over 3 year, 5 year, 10 year time frames. Of course that goal won't be reached every year, but have to aim high. There are about 1870 funds in this category so any finish near the top 200 or so would place you in the top 10%.

I figured June would be an excellent month because we did great versus the indexes, which had a horrible month at -8.6% on the S&P 500 for example. We lost 1.1%. Knowing 99% of our peers do not hedge with short exposure I figured we'd expand our lead as May's #1 fund in the category which we did. July, of course, is going to be awful and push us back to the pack but I still hold out hopes to finish as #1 :) And a top 10 finish (out of 1860 funds) seems assured. Always good to keep things in perspective even though I love to have winning periods every month - it's just not realistic.

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As of June 30, Rising Tide Growth NAV was $12.11, creating a 21.1% return (we started at NAV $10.00). As always my results are kept by third party, which I link to in the left margin of the blog.

RTG Return: +21.1% (19.4% after fees)
Top 25 peer range (1 year as of June): +16.4% (1st place) to +3.0% (25th place)
Average of all peers: -6.6%

Here are the top 25 performers in the category for June 30, 2008.

So let's put things into perspective. Our annual expense ratio will be 1.75% so +21.1% turns into +19.35%. So we'd be the best fund in America in our category by 3%. We'd be beating the 25th best fund in our category by 16%+. We'd be beating the average of our peer group by nearly 28%.

As I scroll through all the non sector funds - we are ahead of every small cap fund in America (growth, value or blend) - by a wide margin. We are ahead of every mid cap fund in America (growth, value or blend) - value and blend has no close competition. Only in the large cap arena are a few funds ahead of us - a few Janus funds, 1 Fidelity fund, and Quaker Strategic Growth.... and of course Mr Ken Heebner. :) So all in all we'd be top 10 in all the non sector mutual funds out there of any size through June. We'll check back in 4 weeks to see how far we fall back in July but I believe I'd be winning Rookie of the Year if we were up and running. ;) If you can survive this market, you can survive anything...

Obviously our long term goals are to be near the top of this list in the 3 year, 5 year, and 10 year categories...

[Legal Disclaimer: Rising Tide Growth fund is a hypothetical fund and in no way, shape, or form can we guarantee similar results in a similarly structured product when launched]

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