9.72 +0.09 (+0.93%) Buy

BRG continues to mint money for it's investors

13 min read

BLUEROCK RESIDENTIAL GROWTH REIT, INC. ranked among the best performers on Monday. It delivered +0.93% to close at 9.72. It is currently trading +34% above it's 52 week low of 7.24 and is down only -5% from it's 52 week high.

[Themes containing BRG]

BRG showed a bearish trend over the last 3 months. During this period BRG delivered -1.42% and saw a maximum drawdown of -17.1%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in BRG till volatility reduces and a clear trend emerges.


BRG has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 9 Aug, 2016 to 26 Feb, 2018. Over the last 2 years 11 months and 10 days, BRG underperformed the SP500 index on 49% days. Which indicates that on days BRG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months BRG was mostly loss making and delivered on average -0.0% per day. It's best return during this period (of +4.61%) was on Thursday, 6 Dec, 2018. While it's worst loss in the same period (of -6.61%) was on Monday, 19 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 1 Oct, 2018 and ended on 5 Oct, 2018. This bearish trend lost -4.56% of investor capital.

The last 12 months saw BRG's investors making profits in 6 months and incurring losses in 6 months. BRG was less consistent in delivering monthly returs than SP500 index. BRG was also a more risky investment than SP500 index as it's worst month in the last year, Jan 2018, returned -16.87% compared to -7.28% returned by SP500 index in Oct 2018. BRG had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both BRG and SP500 index significantly outperform during months when quarterly/annual results are announced.

Anyone who thinks there's safety in numbers hasn't looked at the stock market pages.
-- Irene Peter

BRG 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 BRG's volatility from 25 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BRG has significant positive skewness in it's return distribution. This indicates that investors can expect BRG to recover from drawdowns quickly. Which makes BRG 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 BRG. Therefore, SP500 must receive a lower allocation than BRG in your portfolio. BRG usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in BRG), two mid cap instruments that deserve special mention are ABMD and RHT. They have significantly outperformed the overall market.

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