2018 has been a year full of surprises
After beating the STOXX600 for 7 years in a row with a comfortable margin, our European portfolio underperformed. It lost -23.6% compared to a loss of -13% for the STOXX600. Where last year we were able to report an exceptional all time TWR of +517.9, this has now dropped to +365.2%. This is a significant decline albeit is still more than 10 times the time weighted return of the STOXX600. Alpha is still 330.1 compared to 463 a year earlier.
This drop also had a significant impact on CAGR, which declined from 27.5% to 22.7%. Alpha fell to 18.6. While this is significantly lower than last year, it’s still quite a respectable performance. During the last 8.5 years we outperformed the STOXX600 by 18.6 percentage points on average every year.