BLACKROCK TCP CAPITAL CORP. delivered good returns on Friday. It grew by +0.78% to close at 14.25. On a day when the overall market breadth was 35%, it closed higher than 66% of the market. In comparison, the benchmark SP500 index closed today at -0.0233%.
Buy-and-Hold investors in TCPC experienced a maximum drawdown of -5.24% over the last three months. It lost -1.52% during this down trending period. There were both Long and Short signals during this period, where the short signals were marginally more profitable than the long signals.
TCPC has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 3 days, TCPC underperformed the SP500 index on 50% days. Which indicates that on days TCPC underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.
During the last three months TCPC was mostly loss making and delivered on average -0.02% per day. It's best return during this period (of +1.51%) was on Monday, 19 Nov, 2018. While it's worst loss in the same period (of -1.42%) was on Thursday, 11 Oct, 2018. There was initially a bearish trend during this period which started on 12 Sep, 2018 and went on till 14 Sep, 2018. The trend delivered -2.09% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +1.88% to investors.
TCPC had 4 profitable and 8 loss making months over the last year. During the last year, TCPC underperformed SP500 index on monthly return basis. TCPC was also a less risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -5.5% compared to -7.28% returned by SP500 index in Oct 2018. TCPC had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Jan 2018 to Mar 2018) during which period it delivered -7.54%. It is interesting to note that both TCPC and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Beware of little expenses. A small leak will sink a great ship.
TCPC 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 surge in TCPC's volatility from 11 Sep, 2018 to 6 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that TCPC has significant positive skewness in it's return distribution. This indicates that investors can expect TCPC to recover from drawdowns quickly. Which makes TCPC a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
On a general note (since you are interested in TCPC), CSCO is a large cap that deserves to be closely tracked for investment opportunities.
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