Saturday, July 24, 2010

Posting of Returns Will Be Further Delayed

I'm in the process of changing how I track and report returns, so the returns for June and July will be further delayed.

I'm developing a new spreadsheet which will contain two financial statements, 1) Statement of Net Asset Value, and 2) Statement of Cash Flows. All the data will be obtained from the Interactive Brokers Activity Statement. This will make it easier to track my progress against two metrics, 1) Return on Assets (ROA) and 2) Cash Return on Invested Capital (CROIC).

These statements will use standard accounting practices and will be similar to those of other investment companies. I studied the financial statements for several covered call funds and used them as a model.

I'll only be able to create these new reports for 2010 and beyond. Unfortunately I can't go back any further since my IB account had multiple portfolios, in addition to my CC portfolio, until then end of 2008, which was the reason I didn't use the IB Activity Statements in the past. Also, some of the 2009 data is no longer available.

While I might lose some historical data, I think this is the best approach going forward. It will be much easier to maintain, since IB will provide all the data, and I think it will be easier for myself and others to track my progress.

When I'm ready I'll post a more complete explanation on what I'm doing and why, as well as post the new statements for 2010.