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I got my 3rd quarter newsletter from one of the funds I own. As always, there is a grid showing the fund performance. Usually (ok, always until now) the grid has the fund name on the left and moving from left to right lists YTD, 1yr, 3yr, 5yr, 10yr, 20yr and Since Inception performance numbers. In this grid, they were listed but in reverse order, so reading left to right, the first number you see is the Since Inception number, which is a whole lot higher than the last number, the YTD figure. Very sneaky of them to flip the grid like that. All of the same data is there but they are playing mind games to shift your attention from the dismal returns this year. I think I will shoot off an e-mail to let them know their sleight of hand didn't go unnoticed.
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Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
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If you don't mind, can I ask who this company is?
A private message reply is fine too if you don't want to divulge it publically.
I'm just curious as to who would be doing this.... -
You've heard it said "If you torture the data long enough it will confess to anything." It sounds like that fund company doing their best to hide what happened.
One time, I was a part of a redesign of performance data. The 5yr performance was unimpressive, but the 10yr performance still looked good. So we removed the 5yr data and kept the YTD, 1yr and 10 yr. Nobody said anything. It goes to show, most people who received that same statement you mentioned won't even notice.Comment
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Oh, my gosh."There is some ontological doubt as to whether it may even be possible in principle to nail down these things in the universe we're given to study." --text msg from my kid
"It is easier to build strong children than to repair broken men." --Frederick DouglassComment
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It is Heartland Funds. I didn't want to pick on them because I think they are a great company and I've done very well with them over the years. And it isn't like they are trying to hide anything. All of the same data is right there clear as day. The rest of the report has nothing but blatant and honest articles about the troubled market and economy and how it has impacted their funds and performance. It is just as grim as every other quarterly report we've all been receiving.
I think what they're probably trying to do is point out why it is important to have a long-term view of your portfolio and to not get too hung up on the short-term numbers.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Oh OK. Still, the fact that they veered from their usual format is proof of data manipulation. Albeit a very subtle one.Comment
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BA -
Data Manipulation - those are pretty strong words. I wouldn't call this data manipulation. If they actually said the return was 5% when it was truly negative 12%, then I'd call that data manipulation.
More often, I see that when data has been presented graphically, the scale for the dependent variable is modified so that in good times the good measure is graphincally amplified and in bad times the bad measure is downplayed visually.Comment
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I see that all the time when pharmaceutical reps are showing me data on their products. The detail pieces often have charts and graphs that over-accentuate relatively minor differences between their drug and the competition. The numbers are accurate but the graphic depiction can be deceiving.Originally posted by Daylily View PostSteve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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Heh, you're right. Perhaps my choice of words is a bit too strong.
How about: Caveat Emptor?
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