19.9 -0.08 (-0.4%) Buy

EQGP investors take a moment to reassess their portfolio allocation

13 min read

EQGP HOLDINGS, LP was among the worst performers today. It delivered -0.4% to close at 19.9. During the last week it delivered -0.05% and saw a maximum drawdown of -0.4% before bouncing back.

[Themes containing EQGP]

EQGP is currently in a bullish trend. Over the last three months trading long signals has not been a profitable strategy for EQGP's investors in general. However, this strategy had significantly lower risk when compared to Buy-and-Hold investing (which returned -6.84%). It is therefore better to tread with caution in the current uptrend by limiting your allocation to EQGP.


EQGP has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 31 Mar, 2016 to 8 Nov, 2018. Over the last 2 years 11 months and 14 days, EQGP underperformed the SP500 index on 52% days.

During the last three months EQGP was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +17.63%) was on Friday, 30 Nov, 2018. While it's worst loss in the same period (of -4.91%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 7 losing days, which started on 17 Oct, 2018 and ended on 25 Oct, 2018. This bearish trend lost -19.17% of investor capital.

The last 12 months saw EQGP's investors making profits in 2 months and incurring losses in 10 months. EQGP was less consistent in delivering monthly returs than SP500 index. EQGP significantly outperformed SP500 index in Nov 2018, when it returned +27.52% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. EQGP had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from May 2018 to Oct 2018) during which period it delivered -42.79%.

Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.
-- George Soros

EQGP 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 fall in EQGP's volatility from 13 Nov, 2018 to 18 Dec, 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 EQGP has significant negative skewness in it's return distribution. This indicates that EQGP is very risky for short-term investment and can significantly underperform for long durations.

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

Based on your interest in EQGP you may find it interesting to know that HEAR has shown remarkable performance this year and deserves to be on every investors' watchlist.

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