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Dr. Agarwal's personal IRA portfolio has been representative of the Kinetic Financial investment techniques since 1999. Here is his IRA portfolio track record ending 12/31/2006:
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8 year Compounded Return
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34.0%
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3.4%
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5 year Compounded Return
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20.1%
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6.2%
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3 year Compounded Return
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19.0%
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10.4%
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8 year Cumulative Return
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938.0%
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30.9%
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5 year Cumulative Return
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149.8%
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35.1%
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3 year Cumulative Return
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68.4%
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34.7%
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$74,648
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$2,000
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$124,138
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62.8%
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21.0%
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41.8%
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$124,138
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$2,000
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$189,393
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50.5%
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-9.1%
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59.6%
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$189,393
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$2,000
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$323,848
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69.6%
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-11.9%
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81.5%
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$323,848
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$3,500
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$376,182
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15.0%
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-22.1%
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37.1%
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$376,182
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$3,500
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$489,188
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29.0%
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28.6%
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0.4%
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$489,188
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$3,500
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$598,684
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21.6%
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10.8%
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10.8%
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$598,684 [$750,934 Avg. Weighted Basis]
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$4,500 + $300,000 Rollover from 401K
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$1,004,624 [$101,440 Gain]
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13.5%
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4.9%
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8.6%
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$1,004,624 [$1,054,624 Avg. Weighted Basis] |
$100,000 Rollover from 401k |
$1,336,278 [$231,654 Gain] |
22.0% |
15.8% |
6.2% |
* Click on the statement year to view end-of-year IRA statements from Fidelity.
Notes:
(1) For the purpose of performance calculation, it is assumed, that the contribution was made at the mid point of the year. Thus,
Portfolio Gain = (end of the year balance - beginning balance - contribution)
Ave. portfolio basis = beginning of the year balance + (yearly contribution)/2
Yearly % Gain = Portfolio gain / Ave. Portfolio Basis
(2) S&P performance is based on the S&P Total Return Index.
(3) Beginning March 2000, Dr. Agarwal started buying the symbol SMCFX in his IRA based on the Kinetic Financial techniques. By November 2000, his entire IRA portfolio consisted of SMCFX, also based on Kinetic Financial techniques. Between December 2002 and Jan 2003, Dr. Agarwal started pulling out of SMCFX because of poor performance - again, based on the Kinetic Financial techniques. Although the performance track record above is indicative of the Kinetic Financial techniques, it is not a good benchmark to determine the future returns that Kinetic Financial may yield. We have been unable to find a mutual fund that matches the performance of SMCFX during 2000 to 2002. However, we have been able to find other stellar mutual funds that dramatically outperform the market - such as ESMCX from 2003 to 2006.
(4) Most of the performance gains indicated above are from open-ended mutual funds, close-ended mutual funds, and ETFs that utilize the Kinetic Financial investment techniques. However, there were some gains from stock trading as well. In 1999, $972 of the $47,490 gain was a result of stock trading. In 2000, $3,822 of the $63,255 gain was a result of stock trading. In 2003, $993 of the $109,506 was a result of stock trading.
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