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Geometric Mean Return Effects of Adding Canadian Farmland to an Index Holding

Geometric mean maximization (“GMM”) seeks to achieve growth of the capital invested such that the terminal wealth is maximized as opposed to maximising risk adjusted returns as measured by= the Sharp ratio. Assets described as cost effective safe havens can be colloquially described as enhancing the GMM of a portfolio across various confidence levels. Base on simplified testing on a 100% S&P portfolio, Canadian farmland weighted pursuant to Veripath’s portfolio construction tool, appears to be such a safe haven at relatively modest allocation levels.


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