5.68 -0.07 (-1.22%) Sell

Prayers for BKCC investors as it significantly underperforms

13 min read

BLACKROCK CAPITAL INVESTMENT CORP has destroyed investor wealth today. It delivered -1.22% to close at 5.68. It's recent 5 day performance has been +0.88%, -0.35%, -1.55%, +0.52% and 0.0%.

[Themes containing BKCC]

BKCC is currently in a bearish trend. Over the last three months 2 bearish signals have generated a profit of +2.73% for investors.


BKCC has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 7 Jan, 2016 to 1 Oct, 2018. Over the last 2 years 11 months and 10 days, BKCC underperformed the SP500 index on 53% days.

BKCC returned losses on 66% days in the last three months. During this time, it delivered on average -0.08% per day. It delivered it's best daily return of +5.76%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 4 losing days, which started on 10 Oct, 2018 and ended on 15 Oct, 2018. This bearish trend lost -3.74% of investor capital.

The last 12 months saw BKCC's investors making profits in 5 months and incurring losses in 7 months. BKCC was less consistent in delivering monthly returs than SP500 index. BKCC significantly outperformed SP500 index in Mar 2018, when it returned +9.44% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BKCC 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 BKCC and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Once my ears were open to hearing mentions of 'Shark Tank', I was surprised by how many people in our world, even in our industry, tech and finance, loved the show.

BKCC is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BKCC's volatility from 1 Oct, 2018 to 7 Nov, 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 BKCC has significant positive skewness in it's return distribution. This indicates that investors can expect BKCC to recover from drawdowns quickly. Which makes BKCC 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 BKCC. Therefore, SP500 must receive a lower allocation than BKCC in your portfolio. SP500 index usually has shorter drawdown period than BKCC.

Based on your interest in BKCC you may find it interesting to know that SBOT and AMRH have both shown remarkable performance and deserve to be on every investors' watchlist.

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