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Profit booking on the minds of AM investors as it manages to marginally outperform broader market

13 min read

AM managed to marginally outperform the broader market today. On a longer term basis, investors in ANTERO MIDSTREAM PARTNERS LP made +0.01% per day. Wednesday's performance of +0.07% was a significant outperformance compared to it's daily average.

[Themes containing AM]

Buy-and-Hold investors in AM experienced a maximum drawdown of -22.33% over the last three months. It lost -12.34% 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.


AM has been underperforming the SP500 index in recent time, after having outperformed till 10 Feb, 2017. Over the last 2 years 11 months and 8 days, AM underperformed the SP500 index on 49% days. Which indicates that on days AM underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

AM returned losses on 62% days in the last three months. During this time, it delivered on average -0.18% per day. It delivered it's best daily return of +15.09%, during this period, on Tuesday, 9 Oct, 2018. There was initially a bullish trend during this period which started on 27 Sep, 2018 and went on till 3 Oct, 2018. The bullish trend returned +3.66% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -8.27% of investor capital.

AM had 5 profitable and 7 loss making months over the last year. During the last year, AM underperformed SP500 index on monthly return basis. AM was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -14.17% compared to -7.28% returned by SP500 index in Oct 2018. AM had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both AM and SP500 index significantly outperform during months when quarterly/annual results are announced.

"I do not regard a broker as a member of the human race.

AM is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AM's volatility from 5 Oct, 2018 to 12 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AM 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.

SP500 index has more chance of extreme outcomes than AM. Therefore, SP500 must receive a lower allocation than AM in your portfolio. SP500 index usually has shorter drawdown period than AM.

On a general note (since you are interested in AM), three instruments that have performed similar to AM are ACCO, ANDE and CTB. They must all be evaluated as alternative investment options and for diversification.

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