Mechelany Advisors’ MODEL PORTFOLIO just completed its 6th year of management in a fully transparent way, delivering 6 years of positive double-digit annual performances despite difficult market conditions in 2016 and 2018.
The purpose of our MODEL PORTFOLIO has always been to :
1. Demonstrate the superiority of ACTIVE MANAGEMENT over passive index tracking, and
2. Demonstrate HOW performances were achieved through the implementation of our research investment conclusions in a timely and verifiable manner.
The Performance Comparisons below allow a proper analysis of our research capabilities and their added value in monetary terms when compared to Passive investments in global equity Indexes.
Our MODEL PORTFOLIO is being charged 0.20 % on every transaction while Indexes occur NO charges at all.
After 6 years or 72 months of management, our MODEL PORTFOLIO has delivered :
- +33.32% in 2019, our best-ever year
- 6 consecutive years of Positive Performances despite negative market in 2016 and 2018
- Not one Yearly performance below 16.02 %
- The Portfolio has more than TREBLED IN VALUE in 6 years from 100 to 330.47
- The Cumulative Performance stands at +230.47 %, against 114.83 % for the NASDAQ
- The average annual performance is + 22.27 %, against +13.59 % for the NASDAQ
- The Sharpe Ratio stands at 2.70, against 0.50 for the MSCI World Index
- The Maximum Draw Down remained at -9.97 %, against -10.6 for the MSCI World Index
As the table above shows, our MODEL PORTFOLIO has delivered substantially more performances than passive investments in ANY of the main world equity indexes.
The outperformance vis a vis the MSCI WORLD EQUITY INDEX is spectacular as our Model Portfolio has added 188 % more performance than the index or +15.57 % per annum
The difference is even more striking when compared to European equities, the worst performing of the lot with only +20.74 % cumulative performance in 6 years, while China has remained on par with the US indexes thanks to a spectacular +36.07 %performance in 2019. We were heavily invested in China this year, which explains our solid performance as well.
Japanese equities performed in line with the MSCI World at +45 % over 6 years, while the US NASDAQ was the best of the lot with a cumulative performance of +114.83% over 6 years. Still, our Model Portfolio has more than DOUBLED that performance
The US DOW JONES INDUSTRIAL and STANDARD & POORS 500 returned roughly the same cumulative performance at 72 / 75 %. Still, we outperformed them both by more than 150 % in only 6 years.
Finally, when looking at Emerging markets, the tally is not better. The total Emerging markets only delivered an 11.17 % cumulative performance over the past 6 years while the MSCI Asia Index returned only 20.74 %
Numbers don’t lie and after 6 years of management in very different market conditions, the tables above show without a doubt that ACTIVE MANAGEMENT based on in-depth research delivers FAR SUPERIOR PERFORMANCES over time than passive indexed management.
At 22.27 % average per annum,
US$ 1 Million transforms itself into
US$ 2.54 Billion after 40 years