114.0 -1.34 (-1.18%) Buy

BFAM investors take a moment to reassess their portfolio allocation

13 min read

BRIGHT HORIZONS FAMILY SOLUTIONS INC. delivered massive losses today. It fell by -1.18% to close at 114.0. It's recent 5 day performance has been +1.76%, -1.33%, -1.17%, -2.52% and -1.58%.

[Themes containing BFAM]

BFAM is currently in a bullish trend. The previous long signal in BFAM has not been profitable for investors in general. If you are invested in BFAM at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


BFAM has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 15 Mar, 2017 to 4 Dec, 2018. Over the last 2 years 11 months and 9 days, BFAM outperformed the SP500 index on 54% days.

During the last three months BFAM delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +3.36%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -2.87%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 losing days, which started on 4 Dec, 2018 and ended on 11 Dec, 2018. This bearish trend lost -8.68% of investor capital.

During the last year BFAM had 7 profitable months and 5 loss making months. BFAM returned profits in fewer months than SP500 index. BFAM significantly outperformed SP500 index in Aug 2018, when it returned +11.63% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BFAM had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year.

Your investment belongs to the market and your profits belong to you.
-- Vijay Kedia

BFAM is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BFAM's volatility from 14 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BFAM 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 BFAM. Therefore, SP500 must receive a lower allocation than BFAM in your portfolio. SP500 index usually has shorter drawdown period than BFAM.

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

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