Does "Cash Drag" Affect Value Averaging Investment Returns?

I would like to announce the release of an investment paper "Does "Cash Drag" Affect Value Averaging Investment Returns?"

The purpose of this paper is to address one of the common comments about Value Averaging (VA) which is that "VA requires you have a large side fund and the cash in the side fund causes a drag on the rate of returns a.k.a. “cash drag”". The argument is that the “cash drag” negates any benefit of higher returns when compared to Dollar Cost Averaging and Lump-sum investments.   

This paper will show that cash is actually a benefit to the portfolio depending on how an investor manages the cash.  

We will also show that cash does not create a drag on returns as most investors claim, in fact it improves the returns especially over an intermediate time period of 5 years.

A copy of the report can be downloaded at: