A surprising statistic is that the S&P500 spends about 75% of its time in a drawdown, despite being a well diversified financial product with an acceptable information ratio. It follows that how investment losses are handled is an important part of the long-run investment process, since investors are ironically losing money most of the time. Our pursuit to control these investment losses can be supported by a variety of statistical models that are worth exploring.
Some insight into investment losses
Published: at 09:00 AM