Return Calculations

When you need to explain why a fund's 8% time-weighted return translates to a negative money-weighted return for an investor who deposited right before a drawdown, this is the skill to load. It covers the full spectrum from simple holding period returns through CAGR, TWR, MWR/IRR, and the math behind geometric versus arithmetic means. The worked examples are solid, showing exactly how cash flow timing creates divergence between what the manager earned and what the investor experienced. It's Layer 0 math, so expect formulas and precision rather than high-level commentary. Use it when someone asks about portfolio performance, linking sub-period returns, or why their actual return feels different from what their advisor reported.