Losing 37% a Year for 10 Years Straight
Yes, the past decade of 2000s didn’t treat investors well. If you invested in the DJIA, you lost 9% for the decade. A S&P 500 investor lost 24%. and a NASDAQ investor lost 44%, thanks to the fact that we started the decade at the height of the dot com bubble.
All the above figures are absolute, un-annualized returns. That is, your original 10,000 dollar investment will end up at approximately $9,100, $7,600, and $5,600 respectively.
But how about losing at an annualized rate of 37% a year for 10 years?
That’s what Frontier MicroCap (FEFPX) has managed to treat its investors. If your crystal ball had guided you to the fund back in 2000, every $10,000 of your original investment have become, well, 98 cents.
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