A report card regarding all our Thai stock selections. Here is a complete performance tabulation on our documented record. This as seen by a CFA in the US, whom has followed our work since the very beginning.
Colorado Springs, CO, February 28, 2001
To: Mr. Paul A. Renaud
www.Thaistocks.com
Phuket, Thailand
Dear Paul:
I think you will be interested in the following analysis. I have taken the liberty of calculating the investment returns for Thaistocks.com’s investment recommendations. It is clear that your selections have far outpaced the performance of the Thai stock market.
I examined both Thaistocks.com’s recommended core portfolios and the stocks that you periodically highlight as attractive investments. Because you made the recommendations at different times, I calculated the "time-weighted" returns. This technique puts relatively more emphasis – or weight – on the performance of the earliest recommendations and accounts for the so-called time value of an investor’s money on a quarterly compounded basis.
SELECT 30. In January 1999 Thaistocks.com introduced its "Select 30" portfolio. As of January 2, 2001 – two years from the introduction date -- the Select 30 returned 49.9%, including dividends. During the same period, the SET index returned –25.3%, including dividends. The Select 30 trounced the broad market by 75 percentage points.
ORIGINAL CORE PORTFOLIOS. From June 1997 to January 1999, Thaistocks.com recommended three portfolios. These portfolios were up a combined 37.6% over that two-year period. This is impressive since the SET index benchmark declined about 29.8% during the same time.
THAISTOCKS.COM FEATURED STOCKS. I also examined the performance of Thaistocks.com’s various specific recommendations from January 1999 to February 20, 2001. These twenty-one stocks returned 18.5%. The SET returned -4.1%, using our time-weighted method.
THE CONCLUSION. I believe the data clearly demonstrates that Thaistocks.com is an important value-added service to SET investors. Returns on your recommended companies have, over four years, far exceeded returns on the general market.
TECHNICAL NOTES.
- All calculations are in Thai bath. I did not consider the effects of fluctuating currency exchange rates.
- My calculations are based on data posted at Thaistocks.com. I did not independently verify opening and closing prices or dividends. I used TISCO’s estimate of average dividends paid by the broad market.
- For the SELECT 30 portfolio, I calculated the quarterly compounded, geometrically linked returns, which is the recommended method of the Association of Investment Management and Research in its Performance Presentation Standards. AIMR’s standards are the most common method of calculating investment returns for US investment managers and mutual funds.
- For the portfolio of FEATURED STOCKS, I calculated the quarterly compounded internal rate of return from the date of the first recommendation assuming an equal investment in each stock, on the date and at the price first mentioned.
- I did not consider the effects of brokerage commissions, custodial fees, and other transaction expenses.
Congratulations on a fine performance and best wishes for continued success.
Sincerely,
Robert Thayer, CFA
Colorado Springs, CO USA
