Q & A Database

The GIPS Standards Q&A database contains questions and answers (Q&As) on various searchable topics that provide additional interpretation on an issue. Q&As are considered to be authoritative guidance and must be followed in order to claim compliance with the GIPS standards.

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1 Result
  • Current

    Effective: 1 January, 2020
    Categories: Leverage/Derivatives
    Source: 2020 GIPS Standards

    Please provide an example for how to calculate a return for a portfolio that includes both long and short stocks.

    At the beginning of the period the portfolio consists of $130 long stocks and $30 short stocks. The beginning value of the total portfolio is $100 (= $130 – $30). If long stocks become $142 and short stocks become $27 at the end of the period, the ending value of the total portfolio is $115 (= $142 – $27) and there are no external cash flows for the period.

    R = (115 – 100) / 100 = 15%

    Please also see the prior version