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Negative Cost Basis Performance

General questions about using Fund Manager that do not fit into any other forum.

Postby ballardian » Mon Jun 08, 2020 7:21 am

Hello,

I have a position that has a significant negative cost basis. This is great for me as an investor. One thing I haven't been able to figure out is if and/or how does FM account for that in performance. Last I checked on this a good 6-7 years ago here I was looking at the OOP% Historical and it says N/A.

My first question is does the Cost-Value graph accurately show % (gph, etc) with a position with a negative cost basis.

As well as ROI and TWR reporting?

If not.... and/or what is the best way to view performance of a portfolio with a position that has a negative cost basis?

Thanks for the help
ballardian
 
Posts: 11
Joined: Tue Sep 21, 2010 7:52 pm

Postby Mark » Mon Jun 08, 2020 8:17 am

Hi ballardian,

Both the ROI and TWR will still be accurate/displayed in this case. Graphs are also still available/accurate. You can't get an OOP Historical %Gain because your historical cost basis is negative, so that figure isn't meaningful anymore. Also, on the graphs that are based off OOP cost, you can control whether the historical or current OOP cost is used. See "Graphs / Options / Historical Cost...".
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 9687
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby ballardian » Mon Jun 08, 2020 9:48 am

Thanks Mark. So it sounds like it is the OOP Historical % that specifically is impacted. But since the graphs are off of dollar amounts Cost-Value-H would show accurately.

Is that correct?

Thank you for your quick update.
ballardian
 
Posts: 11
Joined: Tue Sep 21, 2010 7:52 pm

Postby Mark » Mon Jun 08, 2020 10:39 am

Hi ballardian,

Yes, that is correct.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 9687
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ


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