SPECTRA ENERGY PARTNERS, LP ranked among the worst performers on Friday. It delivered -1.2% to close at 35.4. It is currently trading -18% below it's 52 week high of 43.68.
SEP showed a bearish trend over the last 3 months. During this period SEP delivered -6.6% and saw a maximum drawdown of -11.58%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SEP till volatility reduces and a clear trend emerges.
SEP has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 23 Feb, 2016 to 6 Jun, 2018. Over the last 2 years 11 months and 10 days, SEP underperformed the SP500 index on 51% days.
SEP was profitable on 50% days in the last three months. During this time, it delivered on average -0.1% per day. It delivered it's worst daily return of -4.24%, during this period, on Friday, 23 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 20 Sep, 2018 and ended on 26 Sep, 2018. This bearish trend lost -6.29% of investor capital.
The last 12 months saw SEP's investors making profits in 6 months and incurring losses in 6 months. SEP was less consistent in delivering monthly returs than SP500 index. SEP significantly outperformed SP500 index in Jun 2018, when it returned +17.52% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. SEP had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both SEP and SP500 index significantly outperform during months when quarterly/annual results are announced.
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SEP 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 SEP's volatility from 9 Oct, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that SEP has significant negative skewness in it's return distribution. This indicates that SEP is very risky for short-term investment and can significantly underperform for long durations.
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