GAAVX vs. BRK-B

Last updated Jun 4, 2026

GAAVX (GMO Alternative Allocation Fund) is Multistrategy fund managed by GMO, while BRK-B (Berkshire Hathaway Inc.) is a stock. Over the past 5 years, GAAVX returned 2.38%/yr vs 10.20%/yr for BRK-B. At a 0.38 correlation, their price movements are largely independent.

Performance

GAAVX vs. BRK-B - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GMO Alternative Allocation Fund (GAAVX) and Berkshire Hathaway Inc. (BRK-B). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GAAVX achieves a 1.26% return, which is significantly higher than BRK-B's -5.43% return.

GAAVX

• 1D: -0.05%
• 1M: -0.22%
• YTD: 1.26%
• 6M: 3.25%
• 1Y: 13.95%
• 3Y*: 5.68%
• 5Y*: 2.38%
• 10Y*: —

BRK-B

• 1D: 0.82%
• 1M: 1.46%
• YTD: -5.43%
• 6M: -5.61%
• 1Y: -4.51%
• 3Y*: 13.00%
• 5Y*: 10.20%
• 10Y*: 12.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

GAAVX vs. BRK-B - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
GAAVX GMO Alternative Allocation Fund	1.26%	15.19%	-5.70%	6.07%	3.63%	-5.12%	-0.28%	3.49%
BRK-B Berkshire Hathaway Inc.	-5.43%	10.89%	27.09%	15.46%	3.31%	28.95%	2.37%	8.60%

Correlation

The correlation between GAAVX and BRK-B is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (All Time) Calculated using the full available price history since May 10, 2019	0.38

Return for Risk

GAAVX vs. BRK-B — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

GAAVX

GAAVX Risk / Return Rank: 66
GAAVX Sharpe Ratio Rank: 56
GAAVX Sortino Ratio Rank: 74
GAAVX Omega Ratio Rank: 56
GAAVX Calmar Ratio Rank: 87
GAAVX Martin Ratio Rank: 60

BRK-B

BRK-B Risk / Return Rank: 23
BRK-B Sharpe Ratio Rank: 27
BRK-B Sortino Ratio Rank: 22
BRK-B Omega Ratio Rank: 23
BRK-B Calmar Ratio Rank: 24
BRK-B Martin Ratio Rank: 20

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

GAAVX vs. BRK-B - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO Alternative Allocation Fund (GAAVX) and Berkshire Hathaway Inc. (BRK-B). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	GAAVX	BRK-B	Difference
Sharpe ratio Return per unit of total volatility	2.19	-0.32	+2.51
Sortino ratio Return per unit of downside risk	3.58	-0.34	+3.92
Omega ratio Gain probability vs. loss probability	1.42	0.96	+0.46
Calmar ratio Return relative to maximum drawdown	4.20	-0.48	+4.69
Martin ratio Return relative to average drawdown	11.83	-1.02	+12.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GAAVX vs. BRK-B - Sharpe Ratio Comparison

The current GAAVX Sharpe Ratio is 2.19, which is higher than the BRK-B Sharpe Ratio of -0.32. The chart below compares the historical Sharpe Ratios of GAAVX and BRK-B, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	GAAVX	BRK-B	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.19	-0.32	+2.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.60	-0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.67	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.48	-0.07

Drawdowns

GAAVX vs. BRK-B - Drawdown Comparison

The maximum GAAVX drawdown since its inception was -9.59%, smaller than the maximum BRK-B drawdown of -53.86%. Use the drawdown chart below to compare losses from any high point for GAAVX and BRK-B.

Drawdown Indicators

	GAAVX	BRK-B	Difference
Max Drawdown Largest peak-to-trough decline	-9.59%	-53.86%	+44.27%
Max Drawdown (1Y) Largest decline over 1 year	-3.39%	-9.42%	+6.03%
Max Drawdown (3Y) Largest decline over 3 years	-7.73%	-14.95%	+7.22%
Max Drawdown (5Y) Largest decline over 5 years	-9.59%	-26.58%	+16.99%
Max Drawdown (10Y) Largest decline over 10 years	—	-29.57%	—
Current Drawdown Current decline from peak	-3.18%	-11.94%	+8.76%
Average Drawdown Average peak-to-trough decline	-3.08%	-11.07%	+7.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.20%	4.57%	-3.37%

Volatility

GAAVX vs. BRK-B - Volatility Comparison

The current volatility for GMO Alternative Allocation Fund (GAAVX) is 1.95%, while Berkshire Hathaway Inc. (BRK-B) has a volatility of 3.75%. This indicates that GAAVX experiences smaller price fluctuations and is considered to be less risky than BRK-B based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GAAVX	BRK-B	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.95%	3.75%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	4.92%	10.68%	-5.76%
Volatility (1Y) Calculated over the trailing 1-year period	6.51%	14.33%	-7.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.88%	17.11%	-11.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.90%	19.43%	-13.53%

Dividends

GAAVX vs. BRK-B - Dividend Comparison

GAAVX's dividend yield for the trailing twelve months is around 8.67%, while BRK-B has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BRK-B Berkshire Hathaway Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
GAAVX GMO Alternative Allocation Fund	8.67%	8.78%	0.00%	5.18%	0.91%	4.10%	2.41%	2.61%

Frequently Asked Questions

Can I hold both GAAVX and BRK-B in my portfolio?

GAAVX and BRK-B have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GAAVX or BRK-B?

BRK-B has higher volatility (3.75%) compared to GAAVX (1.95%). In terms of maximum drawdown, GAAVX dropped -9.59% vs BRK-B's -53.86%.

Which has better risk-adjusted returns?

GAAVX currently has the higher Sharpe Ratio (2.19 vs -0.32), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.