21.01 -0.63 (-3.0%) Sell

GNTX investors looking to exit as part of sectoral rotation

13 min read

GENTEX CORP was among the worst performers today. It delivered -3.0% to close at 21.01. During the last week it delivered -6.71% and saw a maximum drawdown of -7.65% before bouncing back.

[Themes containing GNTX]

Buy-and-Hold investors in GNTX experienced a maximum drawdown of -20.93% over the last three months. It delivered -10.79% 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 +3.62%.


GNTX has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 25 Jan, 2017 to 17 Oct, 2018. Over the last 2 years 11 months and 3 days, GNTX outperformed the SP500 index on 53% days.

GNTX returned losses on 56% days in the last three months. During this time, it delivered on average -0.16% per day. It delivered it's best daily return of +7.04%, during this period, on Friday, 19 Oct, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +7.24%) started on 26 Oct, 2018 and went on till 1 Nov, 2018 while the bearish trend (which returned -6.43%) started on 21 Sep, 2018 and went on till 27 Sep, 2018.

The last 12 months saw GNTX's investors making profits in 7 months and incurring losses in 5 months. GNTX was less consistent in delivering monthly returs than SP500 index. GNTX significantly outperformed SP500 index in Jan 2018, when it returned +12.07% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GNTX had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both GNTX and SP500 index significantly outperform during months when quarterly/annual results are announced.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

GNTX 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 GNTX's volatility from 11 Sep, 2018 to 29 Oct, 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 GNTX has significant positive skewness in it's return distribution. This indicates that investors can expect GNTX to recover from drawdowns quickly. Which makes GNTX 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 GNTX. Therefore, SP500 must receive a lower allocation than GNTX in your portfolio. SP500 index usually has shorter drawdown period than GNTX.

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

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