58.54 -0.23 (-0.39%) Sell

The party never started for AXE investors as it destroyed investor wealth

13 min read

ANIXTER INTERNATIONAL INC has destroyed investor wealth on Thursday. It returned -0.39% to close at 58.54. On a day when the overall market breadth was 35%, it closed higher than 68% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing AXE]

Buy-and-Hold investors in AXE experienced a maximum drawdown of -21.24% over the last three months. It returned -16.79% during this strong down trending period. There were no long signals during this period, where the short signal generated good profits of +16.79% for investors.


AXE has been underperforming the SP500 index in recent time, after having outperformed till 31 Jan, 2017. Over the last 2 years 11 months and 9 days, AXE underperformed the SP500 index on 48% days. Which indicates that on days AXE underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months AXE was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +4.59%) was on Thursday, 25 Oct, 2018. While it's worst loss in the same period (of -7.57%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 17 Sep, 2018 and went on till 20 Sep, 2018. The bullish trend returned +3.93% to investors. This was followed by a bearish trend that started on 4 Oct, 2018 and ended on 12 Oct, 2018. This bearish trend lost -8.76% of investor capital.

On monthly basis, AXE delivered losses in more months over the last year, than profits. AXE delivered profits less regularly than SP500 index. AXE was also a more risky investment than SP500 index as it's worst month in the last year, Apr 2018, returned -19.97% compared to -7.28% returned by SP500 index in Oct 2018. AXE had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -18.76%. It is interesting to note that both AXE and SP500 index significantly outperform during months when quarterly/annual results are announced.

When you stop chasing the wrong things you give the right things a chance to catch you.
-- Lolly Daskal

AXE 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 AXE's volatility from 28 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AXE has significant positive skewness in it's return distribution. This indicates that investors can expect AXE to recover from drawdowns quickly. Which makes AXE a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

Based on your interest in AXE you may find it interesting to know that NWL has delivered similar performance as AXE and can be considered as an alternative investment candidate (to AXE).

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