Apres-Tax

Understand your returns, after tax.

A hands-on guide to how performance is really measured. Scroll, play, and watch the numbers move. No jargon, just the mechanics.

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Lesson 01

Time-weighted return

When an investor adds or pulls cash, it changes the size of the pot but not the manager's skill. Time-weighting strips that timing out. Here is what that looks like.

Big money lands right before a loss. Bad timing, but whose fault?

Time-weighted
+4.5%
the manager's rate
Money-weighted
-2.2%
includes the investor's timing

The deposit landed right before a loss. The investor's money-weighted result looks worse, but the manager's time-weighted return is unchanged.

P1 +8.0%P2 -12.0%P3 +10.0%+$400k in
Drag the deposit+$400k

Watch money-weighted swing while time-weighted holds still. That is the whole point.

More lessons coming. After-tax is next.