228.06 +0.04 (+0.02%) Sell

Don't lose faith in FDS now, it delivered good returns

13 min read

FACTSET RESEARCH SYSTEMS INC showed marginal outperformance today. It increased by +0.02% to close at 228.06. It's recent 5 day performance has been +2.0%, +0.5%, -0.56%, -1.2% and -0.58%.

[Themes containing FDS]

FDS showed a bearish trend over the last 3 months. During this period FDS fell by -1.71% and saw a maximum drawdown of -9.31%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in FDS till volatility reduces and a clear trend emerges.


FDS has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 31 Aug, 2017 to 27 Nov, 2018. Over the last 2 years 11 months and 9 days, FDS outperformed the SP500 index on 56% days.

During the last three months FDS delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +2.66%) was on Tuesday, 30 Oct, 2018. While it's worst loss in the same period (of -3.03%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 5 profitable days, which started on 21 Nov, 2018 and went on till 28 Nov, 2018. This bullish trend returned +3.82% to investors.

During the last year FDS had 6 profitable months and 6 loss making months. FDS returned profits in fewer months than SP500 index. FDS significantly outperformed SP500 index in Aug 2018, when it returned +13.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. FDS 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 FDS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

FDS 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 FDS's volatility from 20 Sep, 2018 to 25 Sep, 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 FDS has significant positive skewness in it's return distribution. This indicates that investors can expect FDS to recover from drawdowns quickly. Which makes FDS 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 FDS. Therefore, SP500 must receive a lower allocation than FDS in your portfolio. SP500 index usually has shorter drawdown period than FDS.

On a general note (since you are interested in FDS), two instruments that deserve special mention are NFEC and TNDM. They have significantly outperformed the overall market this year.

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