Are you evaluating investing in IRS? Consider as it is looking better than most other alternatives
13 Dec, 201813 min read
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IRSA INVESTMENTS & REPRESENTATIONS INC (Foreign) delivered good returns today. It grew by +2.27% to close at 13.04. It's recent 5 day performance has been -1.62%, -0.69%, -2.39%, -1.04% and +1.35%.
IRS showed a strong down trend over the last 3 months. During this period IRS lost -18.6% and saw a maximum drawdown of -27.34%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in IRS till volatility reduces and a clear trend emerges.
IRS has been underperforming the SP500 index in recent time, after having outperformed till 8 Dec, 2017. Over the last 2 years 11 months and 9 days, IRS underperformed the SP500 index on 51% days.
During the last three months IRS delivered profits on 50% days. However, it still managed to end this period in a loss. It's best return during this period (of +5.9%) was on Monday, 3 Dec, 2018. While it's worst loss in the same period (of -8.38%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 18 Sep, 2018 and went on till 24 Sep, 2018. The bullish trend returned +7.16% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -9.17% of investor capital.
IRS had 3 profitable and 9 loss making months over the last year. During the last year, IRS underperformed SP500 index on monthly return basis. IRS was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.87% compared to -7.28% returned by SP500 index in Oct 2018. IRS had a longer winning streak of losing months than SP500 index. It went down in 6 straight months (from Jan 2018 to Jun 2018) during which period it delivered -57.47%. It is interesting to note that both IRS and SP500 index significantly outperform during months when quarterly/annual results are announced.
"We have to talk about the way we finance campaigns.
IRS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in IRS's volatility from 26 Sep, 2018 to 25 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that IRS has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SP500 index has more chance of extreme outcomes than IRS. Therefore, SP500 must receive a lower allocation than IRS in your portfolio. SP500 index usually has shorter drawdown period than IRS.
Based on your interest in IRS you may find it interesting to know that EHC, ZBRA and AAXN are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.
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