Tony Dong Cockroach Portfolio To EUR Bond Hedged: Rebalancing Strategy

Data Source: from July 1993 to December 2024
Consolidated Returns as of 31 December 2024

Managing the Tony Dong Cockroach Portfolio To EUR Bond Hedged with a yearly rebalancing, you would have obtained a 9.12% compound annual return in the last 30 Years.

With a quarterly rebalancing, over the same period, the return would have been 8.73%.

How do returns and drawdowns change, implementing different rebalancing strategies?

Rebalancing Strategies

In order to keep risk under control, you should rebalance assets quotes from time to time, so to keep them at the original percentage of the asset allocation.

Rebalancing can be performed in several ways.

At fixed time intervals:
  • Yearly: Jan 1st
  • Half Yearly: Jan 1st, Jul 1st
  • Quarterly: Jan 1st, Apr 1st, Jul 1st, Oct 1st
When a component (at least one) diverges from its original weight beyond a certain threshold (e.g. 5% or 10%).

Portfolio Returns as of Dec 31, 2024

Implementing different rebalancing strategies, the Tony Dong Cockroach Portfolio To EUR Bond Hedged guaranteed the following returns.

According to the available data source, we assume we built the portfolio on July 1993.

Portfolio returns are calculated in EUR, assuming:
  • No fees or capital gain taxes
  • the reinvestment of dividends, if existing
  • the adjustment for actual currency exchange rates (simulation derived from original US returns)
  • the currency hedging (simulation taking into account the interest rate differentials of the countries). It is also assumed that hedged instruments have an additional expense ratio of 0.25% (yearly), compared to the US original instrument.
TONY DONG COCKROACH PORTFOLIO TO EUR BOND HEDGED RETURNS
Period: July 1993 - December 2024
Annualized Returns
Swipe left to see all data
Return (%) and number of rebalances as of Dec 31, 2024
Rebalancing Strategy 1Y 5Y 10Y 30Y MAX
(~32Y)
No Rebalancing 16.05 (0) 8.46 (0) 8.94 (0) 9.12 (0) 8.54 (0)
Yearly Rebalancing 18.54 (1) 7.59 (5) 7.88 (10) 8.88 (30) 8.29 (31)
Half Yearly Rebalancing 18.24 (2) 7.46 (10) 7.83 (20) 8.73 (60) 8.15 (63)
Quarterly Rebalancing 18.11 (4) 7.40 (20) 7.89 (40) 8.81 (120) 8.23 (126)
5% Tolerance per asset 18.88 (1) 7.54 (2) 7.93 (4) 8.97 (16) 8.39 (16)
10% Tolerance per asset 18.45 (0) 7.89 (1) 8.12 (1) 9.42 (6) 8.82 (6)

In order to have complete information about the portfolio, please refer to the Tony Dong Cockroach Portfolio To EUR Bond Hedged: ETF allocation and returns page.

Performances as of Dec 31, 2024

Historical returns and stats of Tony Dong Cockroach Portfolio To EUR Bond Hedged, after implementing different rebalancing strategies.

TONY DONG COCKROACH PORTFOLIO TO EUR BOND HEDGED PERFORMANCES
Period: July 1993 - December 2024
Swipe left to see all data
Standard Deviation
Max Drawdown (%)
Rebalancing Strategy Return % Std Dev(%) Ret. / Std Dev MaxDD(%) Ret. / MaxDD
No Rebalancing 8.54 (0) 10.18 0.84 -28.83 0.30
Yearly Rebalancing 8.29 (31) 8.90 0.93 -23.04 0.36
Half Yearly Rebalancing 8.15 (63) 8.83 0.92 -23.87 0.34
Quarterly Rebalancing 8.23 (126) 8.83 0.93 -23.30 0.35
5% Tolerance per asset 8.39 (16) 8.91 0.94 -23.14 0.36
10% Tolerance per asset 8.82 (6) 9.11 0.97 -22.72 0.39
(*) Since Jul 1993 (~32 yrs) | Annualized Returns (and number of rebalances)

Drawdowns as of Dec 31, 2024

Historical Drawdowns of Tony Dong Cockroach Portfolio To EUR Bond Hedged, after implementing different rebalancing strategies.

TONY DONG COCKROACH PORTFOLIO TO EUR BOND HEDGED DRAWDOWNS
Period: July 1993 - December 2024
Swipe left to see all data
Rebalancing
Tolerance per asset
No Rebalancing Yearly Half Yearly Quarterly 5% 10%
-28.83
Jun 2001 - Mar 2010
-23.04
Jun 2001 - Dec 2005
-23.87
Jun 2001 - Dec 2005
-23.30
Apr 2002 - Dec 2005
-23.14
Apr 2002 - Dec 2005
-22.72
Jun 2001 - Sep 2005
-12.04
Jul 1998 - Dec 1998
-12.13
Jan 1994 - Aug 1995
-12.13
Jan 1994 - Aug 1995
-12.28
Jan 1994 - Aug 1995
-11.94
Jan 1994 - Aug 1995
-11.94
Jan 1994 - Aug 1995
-11.94
Jan 1994 - Aug 1995
-9.82
Jul 1998 - Dec 1998
-9.63
Mar 2017 - Nov 2018
-9.57
Mar 2017 - Nov 2018
-9.98
Mar 2017 - Nov 2018
-10.11
Mar 2017 - Nov 2018
-9.28
Mar 2017 - Aug 2018
-9.61
Mar 2017 - Nov 2018
-9.50
Jul 1998 - Jan 1999
-9.50
Jul 1998 - Dec 1998
-9.88
Jul 1998 - Dec 1998
-9.87
Jul 1998 - Dec 1998
-9.25
Nov 2022 - Mar 2024
-8.55
Aug 2022 - Mar 2024
-8.68
Aug 2022 - Mar 2024
-8.93
Jun 2001 - Mar 2002
-8.65
Aug 2022 - Mar 2024
-8.77
Aug 2022 - Mar 2024
5 Worst Drawdowns - Average
-14.27 -12.63 -12.76 -12.72 -12.72 -12.68
10 Worst Drawdowns - Average
-11.34 -9.85 -9.90 -10.13 -10.16 -10.00

For a deeper insight, please refer to the Tony Dong Cockroach Portfolio To EUR Bond Hedged: ETF allocation and returns page.