Back Test of Strategy

The chart below shows the back test of the Alpha fund strategy including the performance of ETFs that track the S&P 500, the DJIA, and the Russell 2000. 

  • Magnolia’s Alpha strategy outperformed the S&P 500 ETF by an annualized 6.7%
  • Magnolia’s Alpha strategy outperformed the DJIA ETF by an annualized 6.5%
  • Magnolia’s Alpha strategy outperformed the Russell 2000 ETF by an annualized 4.0%
  • The REIT market was in a valuation bubble in 2007 with the implied cap rate of the REITs in Magnolia’s portfolio lower than the yield on the 10 year US Treasury
  • The weighted average implied cap rate on REITs in Magnolia’s portfolio are currently approximately 3% higher than the yield on the 10 year US treasury

alpha back test