= Time-weighted return
{wiki=Time-weighted_return}
Time-weighted return (TWR) is a method of measuring the performance of an investment portfolio that eliminates the impact of cash flows (deposits and withdrawals) made during the investment period. This makes it particularly useful for evaluating the performance of an investment manager, as it reflects the manager's ability to generate returns independent of the timing of cash flows. The time-weighted return is calculated by breaking down the investment period into sub-periods, typically corresponding to the dates when cash flows occur.
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