Drawdown Calculation

Discussion in 'Trading' started by traderguy02, Oct 27, 2005.

  1. bolter

    bolter

    Fund managers calculate Drawdowns based upon NAV. This circumvents the problems relating to new funds and redemptions.

    As an aside fund managers generally report drawdons on an end-of-month basis, along with other performance statistics. This figure is generally less than drawdowns calculated on a daily basis (known as peak-to-trough), for obvious reasons.
     
    #11     Oct 28, 2005