Data-driven analysis and case studies for individual investors. We test the decisions you actually face — diversification, rebalancing, product selection — against historical data and offer practical guidance. More articles are available in the Korean edition.
2026.06.15 · Performance
Tracking Error — The Yardstick for Manager Intent
An index fund with 10pp TE is a defect; an active fund with 1pp TE is wasted effort. The one risk metric measured against intent — definition, math, interpretation, and 4 calculation pitfalls.
TERiskBenchmark
2026.06.14 · Performance
Information Ratio — Telling Luck from Skill in Alpha
Alpha that swings ±15pp a year — skill or luck? IR = Alpha / Tracking Error measures consistency, with the 0.5 / 1.0 / 2.0 benchmarks, the difference from Sharpe, and 4 calculation traps.
IRAlphaTracking Error
2026.06.14 · Performance
Alpha (α) — What Beating the S&P 500 Really Means
Portfolio +20% vs S&P 500 +15% isn't 5pp of alpha. Real alpha is what remains after stripping beta — a 4-step framework for honest benchmark comparison, with Information Ratio and Tracking Error.
AlphaBetaBenchmark
2026.06.10 · Fundamentals
ROIC — How Efficiently a Company Puts Its Capital to Work
ROIC sidesteps the ROE trap of debt leverage and measures pure capital efficiency. Definition, calculation, and why the comparison against WACC decides whether value is being created.
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2026.06.07 · Risk Metrics
The Sharpe Ratio Trap — Same Return, Different Score
Two funds, both +12%. One gets Sharpe 1.5, the other 0.5. The math and limits of the volatility penalty — and why Sortino and Calmar exist as alternatives.
SharpeSortinoRisk-adjusted
2026.06.01 · Strategy
DCA vs Lump Sum — Why the Statistics Favor Lump Sum
Vanguard's 2012 study found lump sum beat DCA about 2/3 of the time. Lump sum is the math answer, DCA is the psychology answer — and periodic investing is not the same thing as DCA.
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2026.05.31 · Performance
TWR vs MWR — How to Measure Returns When You Deposit and Withdraw
A portfolio with mid-year contributions doesn't have one return — it has two. Time-weighted (TWR) answers how well you traded; money-weighted (MWR) answers how much your account actually grew.
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