22.0 -1.11 (-5.05%) Sell

GOLF investors looking to exit as part of sectoral rotation

13 min read

GOLF ranked among the worst performers today. On a longer term basis, investors in ACUSHNET HOLDINGS CORP. made -0.07% per day. Thursday's performance of -5.05% was a underperformance compared to it's daily average.

[Themes containing GOLF]

Buy-and-Hold investors in GOLF experienced a maximum drawdown of -20.15% over the last three months. It delivered -17.01% 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 +13.86%.


GOLF has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 11 Aug, 2017 to 14 Aug, 2018. Over the last 2 years and 2 months, GOLF underperformed the SP500 index on 46% days. Which indicates that on days GOLF underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months GOLF was mostly loss making and delivered on average -0.28% per day. It's best return during this period (of +4.29%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -5.05%) was on Thursday, 13 Dec, 2018. The longest stort-term trend during this period was 5 losing days, which started on 14 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -6.69% of investor capital.

The last 12 months saw GOLF's investors making profits in 6 months and incurring losses in 6 months. GOLF was less consistent in delivering monthly returs than SP500 index. GOLF significantly outperformed SP500 index in Aug 2018, when it returned +11.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GOLF had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -19.84%. It is interesting to note that both GOLF and SP500 index significantly outperform during months when quarterly/annual results are announced.

Anyone who thinks there's safety in numbers hasn't looked at the stock market pages.
-- Irene Peter

GOLF 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 GOLF's volatility from 28 Sep, 2018 to 1 Nov, 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 GOLF has significant positive skewness in it's return distribution. This indicates that investors can expect GOLF to recover from drawdowns quickly. Which makes GOLF 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 GOLF. Therefore, SP500 must receive a lower allocation than GOLF in your portfolio. SP500 index usually has shorter drawdown period than GOLF.

On a general note (since you are interested in GOLF), two large cap instruments that deserve special mention are CSCO and UNH. They have significantly outperformed the overall market.

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