Prayers for IQV investors as it destroyed investor wealth
07 Dec, 201813 min read
Share with friends 
IQVIA HOLDINGS INC. ranked among the worst performers today. It delivered -3.18% to close at 117.98. During the last week it delivered -5.67% and saw a maximum drawdown of -7.38% before bouncing back.
Buy-and-Hold investors in IQV experienced a maximum drawdown of -11.88% over the last three months. It delivered -7.77% 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. The net profit from Short signals was +3.67%.
IQV has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Feb, 2016 to 18 Oct, 2018. Over the last 2 years 11 months and 3 days, IQV outperformed the SP500 index on 52% days.
During the last three months IQV delivered profits on 53% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.31%) was on Tuesday, 16 Oct, 2018. While it's worst loss in the same period (of -5.91%) was on Wednesday, 24 Oct, 2018. The longest stort-term trend during this period was 9 profitable days, which started on 20 Nov, 2018 and went on till 3 Dec, 2018. This bullish trend returned +9.95% to investors.
The last 12 months saw IQV's investors making profits in 8 months and incurring losses in 4 months. During the last year, IQV and SP500 index had the same number of profitable months. IQV significantly outperformed SP500 index in Jul 2018, when it returned +22.8% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. IQV and SP500 index, both had periods of 6 consecutive profitable months.
"There are two kinds of investors, be they large or small: those who don't know where the market is headed, and those who don't know that they don't know. Then again, there is a third type of investor -the investment professional, who indeed knows that he or she doesn't know, but whose livelihood depends upon appearing to know.
IQV 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 IQV's volatility from 10 Sep, 2018 to 24 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 IQV has significant positive skewness in it's return distribution. This indicates that investors can expect IQV to recover from drawdowns quickly. Which makes IQV a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
IQV has more chance of extreme outcomes than the SP500 index. Therefore, IQV must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than IQV.
Based on your interest in IQV you may find it interesting to know that AMRN, ECYT and I have all shown remarkable performance this year and deserve to be on every investor's watchlist.
... 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