Author Topic: 4.28% return on grade C+ portfolio in 2013?  (Read 4179 times)

runnovato

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4.28% return on grade C+ portfolio in 2013?
« on: February 07, 2014, 05:34:41 PM »
I was shocked to discover that my LC balance changed only 4.25% in 2013 on a highly diversified portfolio.  This portfolio was put in place and managed by PRIME in November 2011.  It seems that defaults should have subsided by the end of 2012.  Of course, account is buying new notes all the time.  LC dashboard shows 7% return.  The problem is that 7% is an blend of high returns in 2012 and measly 4% in 2013.  In any event 4% is just way below what other observers claiming these portfolios can generate. 

Please share your thoughts, can PRIME be the problem here?

SkaXc0re77

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Re: 4.28% return on grade C+ portfolio in 2013?
« Reply #1 on: February 07, 2014, 07:37:35 PM »
2013 was my first year (and I joined in Jan so I have essentially a full year) -

Didn't use prime, managed on my own - just over 10% real return (don't have the exact numbers on me ATM)

yojoakak

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Re: 4.28% return on grade C+ portfolio in 2013?
« Reply #2 on: February 07, 2014, 09:21:59 PM »
I don't use PRIME, but the last half of the year was terrible for me. So many defaults (and the hemorrhaging hasn't yet stopped.)

http://www.lendacademy.com/forum/index.php?topic=1854.0

« Last Edit: February 07, 2014, 09:28:14 PM by yojoakak »

Rob L

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Re: 4.28% return on grade C+ portfolio in 2013?
« Reply #3 on: February 07, 2014, 09:44:47 PM »
It seems that defaults should have subsided by the end of 2012.

Can't say much about the overall returns, but the common wisdom that charge offs drop off sharply after 12 months is belied by the survival chart:

//lendingrobot.com/data#survivall

Don't know why I can't make it go directly to that chart (Firefox)!
« Last Edit: February 07, 2014, 09:58:02 PM by Rob L »

Peter

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Re: 4.28% return on grade C+ portfolio in 2013?
« Reply #4 on: February 08, 2014, 09:43:38 AM »
I was shocked to discover that my LC balance changed only 4.25% in 2013 on a highly diversified portfolio.  This portfolio was put in place and managed by PRIME in November 2011.  It seems that defaults should have subsided by the end of 2012.  Of course, account is buying new notes all the time.  LC dashboard shows 7% return.  The problem is that 7% is an blend of high returns in 2012 and measly 4% in 2013.  In any event 4% is just way below what other observers claiming these portfolios can generate. 

Please share your thoughts, can PRIME be the problem here?

In 2013 Lending Club's PRIME service was not run very efficiently. It would run irregularly and mainly invested invested in the notes that other investors didn't want. This all changed in late 2013 and PRIME is now running in a much more efficient manner. I think you will find 2014 will be a much better year for PRIME accounts. You can read more here:
http://www.lendacademy.com/lending-club-introduces-an-enhanced-version-of-prime/
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Bohb Daishi

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Re: 4.28% return on grade C+ portfolio in 2013?
« Reply #5 on: February 10, 2014, 04:28:43 AM »
I was shocked to discover that my LC balance changed only 4.25% in 2013 on a highly diversified portfolio.

Another option to boost your returns is to start selling your notes on Folio when they go bad. It's much better to offload a note at a discount than it is to blindly hold onto it long enough to let it charge off.
There are three ways to make a living in this business: be first, be smarter, or cheat.