Lingren Larsen Kapital calculates returns using both the Money-Weighted (MWRR) and Time-Weighted Rate of Return (TWRR) methods, ensuring more accurate performance tracking. TWRR, commonly used in the industry, reflects the compounded growth of an investment since the fund's inception. However, this method can be misleading for investors, as it's much easier to generate high returns during the fund's early stages when assets under management (AUM) are still small. As AUM grows, generating high returns becomes more challenging. However, TWRR continues to reflect the stronger early performance, potentially hiding weaker current results. MWRR addresses this by showing actual investor dollar returns, highlighting the impact of growing AUM. Lingren Larsen Kapital uses a scalable investment strategy that should bring TWRR and MWRR in line over time.

 

Fund managers are encouraged to share their MWRR, but few do so because it would reveal underperformance, especially as many struggle to maintain strong returns when managing larger amounts of capital.

​

In order to produce the most transparent returns within all portfolio management activities in Lingren Larsen Kapital ApS, all results are calculated in accordance with The Global Investment Performance Standards (GIPS®), which are voluntary standards based on fundamental principles of full transparency and fair representation of returns. Lingren Larsen Kapital ApS claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Lingren Larsen Kapital ApS has not been independently verified. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.​

 

The firms GIPS Pooled Fund report is available on request. Documents are in danish.​

 

Credibility and transparency are important to Lingren Larsen Kapital ApS. It is the company's goal to be independently verified when the company's NAV has reached such a level that the costs for this are not unnecessarily high relative to the size of the NAV.