Date: May 5, 2016

 

The Battle of Returns: MLB vs. S&P 500 (April 2015 - April 2016)

 

The 2016 baseball season is underway and teams have begun to navigate the long and winding road that is their 162-game season. Getting off to a successful early start is key in baseball as well as it is in betting on baseball. It is shaping up to be an exciting season as the Chicago Cubs made a statement out of the gate posting a league-best 17-5 record.

 

Not to be outdone, there's great momentum building on the south side of Chicago as well. The Chicago White Sox are off to a great start with a 17-8 record in April. The White Sox also rank as the top betting team in terms of ROI.

 

Last season we posted a comparison between returns generated via investing in baseball versus investing in the S&P 500. While the two are distinctively different investment vehicles,  it's good to assess performance against benchmarks and standards. It's also critical to assess the long-term performance and seek to allocate capital appropriately.

 

Below are the results as of the end of April 2016.

 

Comparison timeframe: April 1, 2015 to April  30,  2016:

 

MLB Strategy 1: +63.58%*

 

MLB Strategy 2: +7.05%*

 

S&P 500: (.14%)** (Comparison)

 

It should be noted that MLB wagers were not available from October 2015 through March 2016 due to the seasonality of the sport. That timeframe is included in the S&P returns.

 

Another challenge quite frankly when dealing in sports betting is the variability of returns. Unlike the S&P which is usually a smoother ride over the long-term, sports betting returns are far more volatile. Investors must adjust their mental model to these circumstances in order to properly manage their expectations and maximize their returns.

 

Regards,

 

Duane

 

High Roller Fund

 

www.highrollerfund.com

 

6S Alternatives LLC

When Six Sigma meets Alternative Investing , a multi-strategy alternative investment opportunity is born..

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