Ken Wilsdon Member Posts: 6 Joined: 4/12/2006 Location: Calgary, Alberta, Canada  User Profile | Perhaps the challenge should be to create a trillion $$ equity curve with under a 10% max draw down. THAT would be a fantastic achievement, even if it is theoretical, and could be instructive on how to reduce risk in a portfolio while maximizing equity over the longer term. Draw down is, in many ways, more important than ROE, as not many people could stomach a > 40% draw down, no matter how great the reward. The Ulcer Factor would be too great. But many could stomach a < 10% MDD over the same time period as the trillion $ portfolio above. | |
