4.59 -0.14 (-2.96%) Sell

Prayers for SNR investors as it destroyed investor wealth

13 min read

SNR delivered massive losses today. On a longer term basis, investors in NEW SENIOR INVESTMENT GROUP INC. made -0.12% per day. Monday's performance of -2.96% was a underperformance compared to it's daily average.

[Themes containing SNR]

Buy-and-Hold investors in SNR experienced a maximum drawdown of -22.6% over the last three months. It delivered -18.04% during this strong bearish trending period. There were no long signals during this period, where the short signal generated good profits of +18.04% for investors.


SNR has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Aug, 2016 to 3 Oct, 2018. Over the last 2 years 11 months and 10 days, SNR underperformed the SP500 index on 50% days. Which indicates that on days SNR underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

SNR returned losses on 57% days in the last three months. During this time, it delivered on average -0.3% per day. It delivered it's worst daily return of -6.82%, during this period, on Thursday, 1 Nov, 2018. The longest stort-term trend during this period was 5 losing days, which started on 7 Dec, 2018 and ended on 13 Dec, 2018. This bearish trend lost -12.03% of investor capital.

The last 12 months saw SNR's investors making profits in 4 months and incurring losses in 8 months. SNR was less consistent in delivering monthly returs than SP500 index. SNR was also a more risky investment than SP500 index as it's worst month in the last year, May 2018, returned -13.23% compared to -7.28% returned by SP500 index in Oct 2018. SNR 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 SNR and SP500 index significantly outperform during months when quarterly/annual results are announced.

"The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.

SNR 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 SNR's volatility from 4 Dec, 2018 to 14 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 19 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that SNR has positive skewness in it's return distribution. This indicates that investors can expect SNR to make attempts to recover from drawdowns quickly. Which makes SNR a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

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

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