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As an Ohio State University study shows, only about 20 percent of individual investors outperform the market return. Indeed, many professional investment advisers and brokers perform at or below market levels, often due to a heavy reliance on mutual
funds. There are other significant problems with the performance of investment professionals; to get an account of why large brokerage firms often perform so poorly, click
here.
Since Niehaus Liberty opened February 27, 2006, Niehaus Liberty clients have outpaced the S&P 500 by a significant margin. The majority of client portfolios hold diversified stocks in long positions, but there are also significant holdings in bonds, a small percentage of stock options, and some cash equivalents. The following table measures the performance of all Niehaus Liberty client accounts since February 27, 2006 versus the time-weighted S&P 500 return over the same period (pro bono accounts are not included in the performance data). The Niehaus Liberty Clients' return is adjusted for all fees charged by Niehaus Liberty. The S&P 500 is an index of 500 widely held blue-chip stocks; it is the most common benchmark used to gauge market performance and must be time-weighted whenever it is compared to investments with fluctuating cost bases.
Client return is calculated for the life of Niehaus Liberty: from February 27, 2006, to the most recent quarter. Long-term performance data more accurately reflects actual returns, since it takes a minimum of three to five years for stock investments to mature. Numbers are updated quarterly. The performance as of June 30, 2010:
Past performance, of course, does not guarantee future success.
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