Well, once cash is returned to the investor, using cash returned on the initial capital base to calculate a compound annual return is the best way. This would allow you to compare the fund’s return to a public market index over the time period. Before this happens, there is no best or one way.
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Well, once cash is returned to the investor, using cash returned on the initial capital base to calculate a compound annual return is the best way. This would allow you to compare the fund’s return to a public market index over the time period. Before this happens, there is no best or one way.