BANC OF CALIFORNIA, INC.

13.92 -0.41 (-2.93%) Sell

BANC investors looking to preserve capital

13 min read

BANC has destroyed investor wealth today. On a longer term basis, investors in BANC OF CALIFORNIA, INC. made +0.03% per day. Friday's performance of -2.93% was a significant underperformance compared to it's daily average.

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Buy-and-Hold investors in BANC experienced a maximum drawdown of -29.34% over the last three months. It returned -28.25% 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 +24.74%.

Trend

BANC has been underperforming the SP500 index in recent time, after having outperformed till 8 Aug, 2016. BANC is currently at it's worst performance to the SP500 index and therefore does not make a good investment candidate. Over the last 2 years 11 months and 10 days, BANC underperformed the SP500 index on 50% days. Which indicates that on days BANC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months BANC was mostly loss making and delivered on average -0.5% per day. It's best return during this period (of +2.76%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -6.66%) was on Monday, 22 Oct, 2018. There was initially a bullish trend during this period which started on 26 Oct, 2018 and went on till 1 Nov, 2018. The bullish trend returned +8.42% to investors. This was followed by a bearish trend that started on 3 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -14.31% of investor capital.

On monthly basis, BANC delivered profits and losses in equal number of months. BANC delivered profits less regularly than SP500 index. BANC was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -19.07% compared to -7.28% returned by SP500 index in Oct 2018. BANC had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

"My father, being a Scotsman, taught me to look after finances. I'm shrewd. Some people may call me tight.

BANC is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in BANC's volatility from 19 Sep, 2018 to 25 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 BANC has significant positive skewness in it's return distribution. This indicates that investors can expect BANC to recover from drawdowns quickly. Which makes BANC 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 BANC. Therefore, SP500 must receive a lower allocation than BANC in your portfolio. BANC usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in BANC), three instruments that deserve special mention are PRQR, I and TNDM. They have all outperformed the market and must be closely watched for investment opportunities.

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