Fund made 155% returns? They forgot to tell you that...

[Dennis Ng]

In Straits Times today there is an article on the Lumiere Value Fund which chalked up gains of 155% last year.

However, if you go to the website of the fund, you will find out that the fund lost 62% of its value the year before ..... and it only broke even since its inception 2.5 years ago .... even after taking into account that 155% gain last year!

You don't have to take my words for it, read their website yourself:

http://lumierecapital.com/content_performance.HTML

[findleowong]

Hi Dennis,

Thanks for sharing. Not be surprise that they started their firm in year 2007 till date. Whereas the past few years are bad to the financial crisis!

The next few years from now, we should see how their fund performs.

Cheers
Leo

[Dennis Ng]

Hi Dennis,

Thanks for sharing. Not be surprise that they started their firm in year 2007 till date. Whereas the past few years are bad to the financial crisis!

The next few years from now, we should see how their fund performs.

Cheers
Leo

yup. But guess they didn't see the Global Financial Crisis coming in year 2008. I did.

That's made the BIG difference. Becos I saw the Crisis coming, in year 2007 when these guys are buying stocks, I was busy selling stocks.

I sold off 80% of my stocks in year 2007 and also sold off my Investment Properties, thereby "lock-in" the Capital Gains of over 300% I made over the 5 years from year 2002 to year 2007. And I started re-investing big time into stocks since Oct 2008. And my year 2009's returns is about 40%.....so my cumulative returns over year 2002 till year 2009 is 340%...

I guess it shows that "Market Cycle Investing" Investing worked better than just simply based on Fundamentals alone.....