70.82 -0.36 (-0.51%) Buy

FNV investors herd to book profits while the going is good

13 min read

FRANCO NEVADA CORP (Foreign) was among the worst performers today. It lost -0.51% to close at 70.82. During the last week it lost -0.13% and saw a maximum drawdown of -1.92% before bouncing back.

[Themes containing FNV]

FNV is currently in a up trend. The current bullish signal has generated a profit of +8.47% for FNV's investors in the last three months.


FNV has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 7 days, FNV outperformed the SP500 index on 51% days.

During the last three months FNV was mostly profitable and delivered on average +0.21% per day. It's best return during this period (of +4.42%) was on Thursday, 11 Oct, 2018. While it's worst loss in the same period (of -2.92%) was on Tuesday, 9 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 25 Sep, 2018. The trend delivered -4.51% losses to investors. This was followed by a bullish trend that started on 14 Nov, 2018 and ended on 21 Nov, 2018. This bullish trend delivered +10.36% to investors.

FNV had 5 profitable and 7 loss making months over the last year. During the last year, FNV underperformed SP500 index on monthly return basis. FNV was also a more risky investment than SP500 index as it's worst month in the last year, Aug 2018, returned -12.64% compared to -7.28% returned by SP500 index in Oct 2018. FNV had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -14.59%. It is interesting to note that both FNV and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The monarchy is foremost a business, and it's important to them that the British public continue to finance the excessive luxurious lifestyles of the now quite enormous, wasteful and useless 'royal' family. I find it very sad.

FNV is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in FNV's volatility from 13 Sep, 2018 to 16 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 13 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FNV has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

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

Based on your interest in FNV you may find it interesting to know that V is a large cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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