18.67 +0.13 (+0.7%) Sell

GPMT investors elated by performance

13 min read

GPMT outperformed the broader market today. On a longer term basis, investors in GRANITE POINT MORTGAGE TRUST INC. made +0.01% per day. Tuesday's performance of +0.7% was a outperformance compared to it's daily average.

[Themes containing GPMT]

Buy-and-Hold investors in GPMT experienced a maximum drawdown of -6.26% over the last three months. It delivered -3.06% during this 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.


GPMT has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 11 Aug, 2017 to 26 Jan, 2018. Over the last 1 year and 6 months, GPMT underperformed the SP500 index on 49% days. Which indicates that on days GPMT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months GPMT was mostly loss making and delivered on average -0.05% per day. It's best return during this period (of +1.86%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -3.22%) was on Monday, 1 Oct, 2018. The longest stort-term trends during this period were 3 profitable and losing days. The bullish trend (which returned +2.9%) started on 12 Oct, 2018 and went on till 16 Oct, 2018 while the bearish trend (which returned -1.94%) started on 17 Sep, 2018 and went on till 19 Sep, 2018.

The last 12 months saw GPMT's investors making profits in 7 months and incurring losses in 5 months. GPMT was less consistent in delivering monthly returs than SP500 index. GPMT significantly outperformed SP500 index in May 2018, when it returned +9.92% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GPMT and SP500 index, both had periods of 6 consecutive profitable months.

Courage is being scared to death, but saddling up anyway.
-- John Wayne

GPMT 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 GPMT's volatility from 14 Sep, 2018 to 7 Dec, 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 GPMT has significant positive skewness in it's return distribution. This indicates that investors can expect GPMT to recover from drawdowns quickly. Which makes GPMT a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in GPMT), ZBRA is a small cap that deserves to be closely tracked for investment opportunities.

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