BSIG has destroyed investor wealth today. On a longer term basis, investors in BRIGHTSPHERE INVESTMENT GROUP PLC made +0.01% per day. Friday's performance of -3.08% was a underperformance compared to it's daily average.
BSIG showed a strong bearish trend over the last 3 months. During this period BSIG fell by -12.96% and saw a maximum drawdown of -17.16%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in BSIG till volatility reduces and a clear trend emerges.
BSIG has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 2 Oct, 2018. Over the last 2 years 11 months and 10 days, BSIG underperformed the SP500 index on 50% days. Which indicates that on days BSIG underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
BSIG returned losses on 58% days in the last three months. During this time, it delivered on average -0.19% per day. It delivered it's best daily return of +8.77%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 7 losing days, which started on 24 Sep, 2018 and ended on 2 Oct, 2018. This bearish trend lost -6.56% of investor capital.
During the last year BSIG had 5 profitable months and 7 loss making months. BSIG returned profits in fewer months than SP500 index. BSIG was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -16.4% compared to -7.28% returned by SP500 index in Oct 2018. BSIG had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Jun 2018 to Oct 2018) during which period it delivered -29.59%. It is interesting to note that both BSIG and SP500 index significantly outperform during months when quarterly/annual results are announced.
The only way to beat an index is to invest in something other than the index. Why would you, when the only source of long-term risk and return data is the index ?
-- Hebner, Mark.
BSIG 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 BSIG's volatility from 17 Sep, 2018 to 5 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 BSIG has significant positive skewness in it's return distribution. This indicates that investors can expect BSIG to recover from drawdowns quickly. Which makes BSIG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
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