In a previous thread entitled Fund Volatility, Steve made the following comments: quote At the start of the month we were in excess of 3% above the S&P 200 and now -7% later we are 2% above the index. (But we are holding about 5.6% of potential outperformance.) What does this mean?? Similarly to what happened in March: Until the market recovers to its previous position the potemtial gain will remain just a potential. (Unrealised) With each increase back up we will gain the extra margin from each value (cheap) purchase we have made. By current norms, when the market again reaches its previous high we should be approx 5.60% above the S&P 200. end quote As of today the S&P200 is about 40 points off it's previous high so when I check the Navra fund's performance as of 16/11, I am a little perplexed to see the performance fee at only 0.22% which to me indicates an outperformance of the S&P200 of only around 0.6%. This is a long way off the 5.6% indicated by Steve. Is my understanding wrong or what is the explanation as to why the fund hasn't outperformed the index by at least 5% (thereby earning a performance fee of around 1.75%)?