PRIME FOCUS LIMITED

61.25 -0.79 (-1.29%) Sell

PFOCUS continues its fall as more investors loose confidence

14 min read

PFOCUS ranked worse than it's peers today. On a longer term basis, investors in PRIME FOCUS LIMITED made +0.06% per day. Friday's performance of -1.29% was a significant underperformance compared to it's daily average.

[Themes containing PFOCUS]

Buy-and-Hold investors in PFOCUS experienced a maximum drawdown of -20.33% over the last three months. It returned -10.52% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +5.95%.

Trend

PFOCUS has been underperforming the NIFTY-50 index in recent time, after having outperformed till 4 Jan, 2018. Over the last 3 years and 1 month, PFOCUS underperformed the NIFTY-50 index on 57% days.

During the last three months PFOCUS was mostly loss making and delivered on average -0.14% per day. It's best return during this period (of +9.75%) was on Monday, 7 Jan, 2019. While it's worst loss in the same period (of -4.94%) was on Tuesday, 8 Jan, 2019. There was initially a bullish trend during this period which started on 29 Oct, 2018 and went on till 31 Oct, 2018. The bullish trend returned +8.54% to investors. This was followed by a bearish trend that started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -14.05% of investor capital.

On monthly basis, PFOCUS delivered losses in more months over the last year, than profits. PFOCUS delivered profits less regularly than NIFTY-50 index. PFOCUS was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -19.42% compared to -6.42% returned by NIFTY-50 index in Sep 2018. PFOCUS had a longer winning streak of losing months than NIFTY-50 index. It went down in 3 straight months (from May 2018 to Jul 2018) during which period it delivered -21.81%. It is interesting to note that both PFOCUS and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

I'm only rich because I know when I'm wrong..I basically have survived by recognizing my mistakes.
-- George Soros

PFOCUS is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in PFOCUS's volatility from 29 Nov, 2018 to 2 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 PFOCUS has significant negative skewness in it's return distribution. This indicates that PFOCUS is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than PFOCUS. Therefore, NIFTY-50 must receive a lower allocation than PFOCUS in your portfolio. NIFTY-50 index usually has shorter drawdown period than PFOCUS.

On a general note (since you are interested in PFOCUS), two instruments that have delivered similar performance as PFOCUS are NCC and FORTIS. They are suitable as good alternative investment candidates that can diversify your portfolio.

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