30.06 -0.01 (-0.03%) Buy

Are you evaluating investing in ITG? Wait as it underperformed

13 min read

INVESTMENT TECHNOLOGY GROUP, INC. significantly underperformed on Thursday. It lost -0.03% to close at 30.06. It is currently trading +59% above it's 52 week low of 18.85 and is down only 0% from it's 52 week high.

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ITG showed a strong up trend over the last 3 months. During this period ITG gained +42.26% . There were 2 long signals during this period that returned a cumulative of +30.93% to investors.


ITG has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, ITG outperformed the SP500 index on 48% days. Which indicates that on days ITG outperforms the SP500 index, it's performance is marginally better than on the days it underperforms the SP500 index.

ITG was profitable on 50% days in the last three months. During this time, it delivered on average +0.61% per day. It delivered it's best daily return of +25.34%, during this period, on Thursday, 4 Oct, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 27 Sep, 2018. The trend delivered -4.38% losses to investors. This was followed by a bullish trend that started on 26 Oct, 2018 and ended on 9 Nov, 2018. This bullish trend delivered +12.47% to investors.

ITG had 6 profitable and 6 loss making months over the last year. During the last year, ITG underperformed SP500 index on monthly return basis. ITG significantly outperformed SP500 index in Oct 2018, when it returned +28.17% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. ITG had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both ITG and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, Margin of Safety.

ITG is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant fall in ITG's volatility from 4 Oct, 2018 to 13 Dec, 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 ITG 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 ITG. Therefore, SP500 must receive a lower allocation than ITG in your portfolio. SP500 index usually has shorter drawdown period than ITG.

Based on your interest in ITG you may find it interesting to know that SQ, ABMD and LULU are mid caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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