1.58 -0.03 (-1.86%) Sell

Doubt in the minds of SFUN investors as it destroyed investor wealth

13 min read

FANG HOLDINGS LTD (Foreign) was among the worst performers today. It fell by -1.86% to close at 1.58. It's recent 5 day performance has been -3.01%, -1.19%, -4.55%, +1.15% and +2.35%.

[Themes containing SFUN]

SFUN is currently in a bearish trend. The current bearish signal has generated a profit of +36.8% for investors in the last three months.


SFUN has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 5 Jan, 2016 to 3 Dec, 2018. Over the last 2 years 11 months and 9 days, SFUN underperformed the SP500 index on 54% days.

SFUN returned losses on 62% days in the last three months. During this time, it delivered on average -0.68% per day. It delivered it's worst daily return of -7.29%, during this period, on Friday, 9 Nov, 2018. The longest stort-term trend during this period was 7 profitable days, which started on 14 Sep, 2018 and went on till 24 Sep, 2018. This bullish trend returned +8.54% to investors.

During the last year SFUN had 2 profitable months and 10 loss making months. SFUN returned profits in fewer months than SP500 index. SFUN was also a more risky investment than SP500 index as it's worst month in the last year, Jun 2018, returned -23.47% compared to -7.28% returned by SP500 index in Oct 2018. SFUN had a longer winning streak of losing months than SP500 index. It went down in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered -99.25%.

"A bull market is very much like being in love. You don't realise its value till It's gone.

SFUN 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 SFUN's volatility from 18 Sep, 2018 to 23 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 SFUN has significant negative skewness in it's return distribution. This indicates that SFUN is very risky for short-term investment and can significantly underperform for long durations.

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

On a general note (since you are interested in SFUN), three mid cap instruments that deserve special mention are SQ, TWTR and LULU. They have all outperformed the market and must be closely watched for investment opportunities.

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