[Verse 1]
Sarah puts ten grand in January's frost
Manager buys stocks when markets dip and cross
March arrives, she adds another five
Portfolio dancing, keeping dreams alive
But which return tells the truest tale?
Two different measures on investment's scale
[Chorus]
Time-weighted strips the cash flow noise away
Shows pure performance day by day
Money-weighted feels what investors face
Cash timing puts returns in place
TWR for managers, MWR for you
Different stories, both are true
[Verse 2]
Time-weighted freezes every dollar's power
Measures skill in each trading hour
Like a race where runners start the same
Portfolio growth becomes the only game
No penalty for when new money flows
Just pure returns the manager chose
[Chorus]
Time-weighted strips the cash flow noise away
Shows pure performance day by day
Money-weighted feels what investors face
Cash timing puts returns in place
TWR for managers, MWR for you
Different stories, both are true
[Verse 3]
Money-weighted counts your actual ride
When you invested, how fortunes collide
Add cash at peaks, your returns fall down
Buy the dips, you'll wear the crown
Internal rate tells your personal score
What your wallet truly saw
[Bridge]
Geometric linking chains the periods tight
Time-weighted smooths the bumpy flight
IRR calculation solves for rate
Where present value seals your fate
[Chorus]
Time-weighted strips the cash flow noise away
Shows pure performance day by day
Money-weighted feels what investors face
Cash timing puts returns in place
TWR for managers, MWR for you
Different stories, both are true
[Outro]
Choose your lens to see returns unfold
Manager skill or investor's gold
Both measures serve their purpose well
Different questions, different tales to tell