13.38 -0.41 (-3.04%) Sell

Doubt in the minds of CCT investors as it was among the worst performers

13 min read

CORPORATE CAPITAL TRUST, INC. has destroyed investor wealth on Friday. It fell by -3.04% to close at 13.38 which is it's 52 week low, down -22% from it's 52 week high.

[Themes containing CCT]

CCT is currently in a bearish trend. The current bearish signal has generated a profit of +16.58% for investors in the last three months.


CCT has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 8 Dec, 2017 to 3 Dec, 2018. Over the last 1 year and 1 month, CCT underperformed the SP500 index on 53% days.

During the last three months CCT was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +3.67%) was on Monday, 5 Nov, 2018. While it's worst loss in the same period (of -3.04%) was on Friday, 14 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 11 Oct, 2018 and ended on 18 Oct, 2018. This bearish trend lost -4.41% of investor capital.

During the last year CCT had 4 profitable months and 8 loss making months. CCT returned profits in fewer months than SP500 index. CCT significantly outperformed SP500 index in Mar 2018, when it returned +8.96% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. CCT had a longer winning streak of losing months than SP500 index. It went down in 5 straight months (from Aug 2018 to Dec 2018) during which period it delivered -23.12%. It is interesting to note that both CCT and SP500 index significantly outperform during months when quarterly/annual results are announced.

"We have to talk about the way we finance campaigns.

CCT 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 CCT's volatility from 17 Sep, 2018 to 6 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 CCT has significant negative skewness in it's return distribution. This indicates that CCT is very risky for short-term investment and can significantly underperform for long durations.

SP500 index has more chance of extreme outcomes than CCT. Therefore, SP500 must receive a lower allocation than CCT in your portfolio. SP500 index usually has shorter drawdown period than CCT.

Based on your interest in CCT you may find it interesting to know that PTC and EHC are both small caps that have shown remarkable performance and deserve to be on every investors' watchlist.

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