4.15 -0.19 (-4.6%) Sell

VICEROY investors incur serious losses

13 min read

VICEROY HOTELS LIMITED significantly underperformed today. It delivered -4.6% to close at 4.15. During the last week it delivered -10.75% and saw a maximum drawdown of -10.75%.

[Themes containing VICEROY]

Buy-and-Hold investors in VICEROY experienced a maximum drawdown of -31.97% over the last three months. It delivered -23.85% during this strong bearish 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 +10.1%.


VICEROY has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 17 Oct, 2016 to 22 Jan, 2019. One must note that VICEROY is currently at it's worst performance to the NIFTY-50 index which makes it a bad investment candidate. Over the last 3 years and 1 month, VICEROY underperformed the NIFTY-50 index on 57% days.

VICEROY returned losses on 62% days in the last three months. During this time, it delivered on average -0.39% per day. It delivered it's worst daily return of -4.96%, during this period, on Wednesday, 14 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +13.47%) started on 6 Nov, 2018 and went on till 13 Nov, 2018 while the bearish trend (which returned -10.11%) started on 19 Dec, 2018 and went on till 26 Dec, 2018.

The last 12 months saw VICEROY's investors making profits in 3 months and incurring losses in 9 months. VICEROY was less consistent in delivering monthly returs than NIFTY-50 index. VICEROY was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Sep 2018, returned -27.66% compared to -6.42% returned by NIFTY-50 index in Sep 2018. VICEROY 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 -58.34%. It is interesting to note that both VICEROY and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

"I finally know what distinguishes man from the other beasts: financial worries.

VICEROY is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in VICEROY's volatility from 23 Oct, 2018 to 12 Nov, 2018. 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 VICEROY has significant negative skewness in it's return distribution. This indicates that VICEROY is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in VICEROY), SPLIL has performed really well this year and deserves to be closely tracked for investment opportunities.

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