HOULIHAN LOKEY, INC.

39.79 -0.47 (-1.19%) Sell

HLI investors incur serious losses

13 min read

HLI significantly underperformed today. On a longer term basis, investors in HOULIHAN LOKEY, INC. made -0.07% per day. Tuesday's performance of -1.19% was a underperformance compared to it's daily average.

[Themes containing HLI]

Buy-and-Hold investors in HLI experienced a maximum drawdown of -17.54% over the last three months. It delivered -15.43% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +15.43% for investors.

Trend

HLI has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 6 Jul, 2016 to 22 Jun, 2018. Over the last 2 years 11 months and 7 days, HLI outperformed the SP500 index on 53% days.

HLI returned losses on 60% days in the last three months. During this time, it delivered on average -0.26% per day. It delivered it's worst daily return of -5.08%, during this period, on Tuesday, 4 Dec, 2018. The longest stort-term trend during this period was 7 losing days, which started on 17 Oct, 2018 and ended on 25 Oct, 2018. This bearish trend lost -11.11% of investor capital.

The last 12 months saw HLI's investors making profits in 5 months and incurring losses in 7 months. HLI was less consistent in delivering monthly returs than SP500 index. HLI significantly outperformed SP500 index in May 2018, when it returned +9.87% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. HLI had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -21.93%. It is interesting to note that both HLI and SP500 index significantly outperform during months when quarterly/annual results are announced.

Formal education will make you a living; self-education will make you a fortune.
-- Jim Rohn

HLI 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 HLI's volatility from 2 Oct, 2018 to 26 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 HLI has significant positive skewness in it's return distribution. This indicates that investors can expect HLI to recover from drawdowns quickly. Which makes HLI a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

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

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Following
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{detail.name}} {{detail.trend}} 
 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter