L&T TECHNOLOGY SER. LTD. showed marginal outperformance today. It increased by +0.22% to close at 1669.85. During the last week it fell by -1.39% and saw a maximum drawdown of -3.08% before bouncing back.
Buy-and-Hold investors in LTTS experienced a maximum drawdown of -13.74% over the last three months. It increased by +16.75% during this strong bullish trending period. There were no long signals during this period. However, the short signal incurred a significant loss, losing -16.75% of investors' capital.
LTTS has been outperforming the NIFTY-50 index in recent time. It showed significant outperformance (compared to the NIFTY-50 index) from 2 Aug, 2017 to 1 Nov, 2018. Over the last 2 years and 4 months, LTTS outperformed the NIFTY-50 index on 47% days. Which indicates that on days LTTS outperforms the NIFTY-50 index, it's performance is marginally better than on the days it underperforms the NIFTY-50 index.
During the last three months LTTS was mostly profitable and delivered on average +0.27% per day. It's best return during this period (of +7.27%) was on Friday, 26 Oct, 2018. While it's worst loss in the same period (of -4.7%) was on Thursday, 3 Jan, 2019. The longest stort-term trend during this period was 7 profitable days, which started on 24 Oct, 2018 and went on till 1 Nov, 2018. This bullish trend returned +20.63% to investors.
During the last year LTTS had 5 profitable months and 7 loss making months. LTTS returned profits in more months than NIFTY-50 index. LTTS significantly outperformed NIFTY-50 index in Aug 2018, when it returned +21.21% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. LTTS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from Sep 2018 to Nov 2018) during which period it delivered -11.28%. It is interesting to note that both LTTS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand
LTTS is currently seeing overall increase in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in LTTS's volatility from 29 Oct, 2018 to 16 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.
Advanced/professional short-term investors should note that LTTS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
NIFTY-50 index has more chance of extreme outcomes than LTTS. Therefore, NIFTY-50 must receive a lower allocation than LTTS in your portfolio. NIFTY-50 index usually has shorter drawdown period than LTTS.
Based on your interest in LTTS you may find it interesting to know that HINDUNILVR, TORNTPHARM and BAJAJFINSV are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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