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(For the record, this portfolio returned just 1percentt in 1999).
The portfolio returned £1.1bn or 6.1% in the year to 30 September 2015, despite a difficult market backdrop.
A back-tested clone portfolio returned an average of 12.8% a year over nearly 20 years compared with 14.2% for the typical hedge fund.
In the ten years to end-May, a "fundamentally weighted" American portfolio returned 4.8% a year, against an annual loss of 0.8% from the S&P500.In a recent paper*, Mr Arnott and others showed that similar fundamental factors, when applied to corporate bonds, produced a portfolio that outperformed a value-weighted index over the period January 1997 to December 2009.
Rewind 30 years, and the same evenly split portfolio returned an annualized 10.3 percent from July 31 , 1981 through the same date this year, while the 30 percent stock portfolio earned 9.9 percent, and the 100 percent stock portfolio yielded 10.9 percent annualized.
This measures how much the fund's portfolio returned relative to its volatility.
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This portfolio returns at a higher rate with less risk using the simple concept of diversification.
The portfolio returns assumed reinvestment of dividends and capital gains and included portfolio expenses, but excluded sales charges, enrollment fees and taxes.
"Satellites were a valuable part of any portfolio, returning an impressive 133% in 1999 and handily beating the broader market indices," Kidd said.
The M100 were net sellers last week by a ratio of 7-to-5, and their portfolios returned 7.1% for the first full trading week of 2004.
Buckingham's Prudent Speculator model portfolios returned an average of 101% in 2003, as many of his value stocks–like homebuilders Centex and Hovnanian –behaved more like growth stocks.
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CEO of Professional Science Editing for Scientists @ prosciediting.com