We have a local Quant Student!

Thanks to LP for introducing Student's blog. Do check out Process Driven Trading, he really put a lot of effort into it. :)

Want to know more about Quants? I watched this video sometime ago which is very interesting.

Year End Portfolio 2010

Happy New Year Everyone! Hope that you guys had a wonderful 2010! :D

I have been busy with a lot of other stuffs except blogging haha... If you are lucky, you might be able to catch me chatting in LP's blog.

Made a grave error in overstating the returns for Kingsmen and above is the edited 2009 portfolio. Taking into account of this error, which I only managed to detect it today! I have severely underperformed the STI ETF in 2009 by 18.7%! However, I usually perform better in bear markets than in bull markets.

Recall the performance yardstick.

Yardstick

Like most things we do everyday, we should have a yardstick to measure performance. I hope to do better in bear markets than in bull markets as I'm looking for companies with good future prospects at depressed market prices. I would be happy if my portfolio can outperform the STI ETF by 10% each year. For example the STI ETF this year gained 22.1%, I would do well if I can achieve >32.1% gain in portfolio for the year. I also consider in a year whereby my portfolio is down 20% and the STI ETF down 30% to be a better year.

The STI ETF ended the year 12.5% higher including dividends than where it ended in 2009. Dividends received was $0.06 or 2% at $2.97, 2008 market close. I outperformed the market by 28.9% which makes the score, 3 for me and Mr Market 1. :)

Is this luck or skill? Only time will tell. I've stayed with Mr Market for one cycle (bull-bear-bull) for the past 4 years. I guess to convincingly say that one is good, one should at least go through 3 cycles of the boom and bust. How long is one cycle? Nobody knows, it varies and is not exact science. Read uncle88's blog, quite funny haha...

Regards,
Cheng BSM (B.StockMkt, SG)

Ps: This title is made up and has no value whatsoever. Lol!