35.67 -3.24 (-9.07%) Sell

FMS investors hurt by serious losses

13 min read

FMS was among the worst performers today. On a longer term basis, investors in FRESENIUS MEDICAL CARE AG & CO. KGAA (Foreign) made +0.01% per day. Friday's performance of -9.07% was a underperformance compared to it's daily average.

[Themes containing FMS]

Buy-and-Hold investors in FMS experienced a maximum drawdown of -32.47% over the last three months. It fell by -28.66% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +26.88%.


FMS has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 3 Feb, 2016 to 7 Dec, 2018. One must note that FMS is currently at it's worst performance to the SP500 index which makes it a bad investment candidate. Over the last 2 years 11 months and 3 days, FMS underperformed the SP500 index on 49% days. Which indicates that on days FMS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months FMS was mostly loss making and delivered on average -0.48% per day. It's best return during this period (of +8.85%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -16.81%) was on Wednesday, 17 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +4.33%) started on 10 Sep, 2018 and went on till 14 Sep, 2018 while the bearish trend (which returned -3.6%) started on 2 Oct, 2018 and went on till 8 Oct, 2018.

During the last year FMS had 6 profitable months and 6 loss making months. FMS returned profits in fewer months than SP500 index. FMS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -26.01% compared to -7.28% returned by SP500 index in Oct 2018. FMS had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year.

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.

FMS 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 FMS's volatility from 10 Sep, 2018 to 2 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

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

Based on your interest in FMS you may find it interesting to know that JEF and RPAI have both performed similar to FMS and can be considered by investors as alternative investment options.

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