The annualized rate of return is a method of converting the rate of return into the annualized return, which provides a theoretical estimate of the return rather than representing actual realized gains. Tiger uses compound interest for the calculation, and the formula is as follows:
Annualized RoR = (1 + RoR) ^ (q / T) - 1
Where:
q = 365
T = the number of calendar days in the customized time interval.