THIRD POINT REINSURANCE LTD. underperformed today. It lost -0.72% to close at 9.59. It's recent 5 day performance has been -2.13%, -1.99%, +2.03%, +0.92% and -0.31%.
TPRE showed a strong down trend over the last 3 months. During this period TPRE lost -27.35% and saw a maximum drawdown of -28.7%. There were 2 short signals during this period that returned a cumulative of +17.68% to investors.
TPRE has been underperforming the SP500 index in recent time, after having outperformed till 23 Oct, 2017. Over the last 2 years 11 months and 10 days, TPRE underperformed the SP500 index on 52% days.
TPRE returned losses on 62% days in the last three months. During this time, it delivered on average -0.48% per day. It delivered it's worst daily return of -9.75%, during this period, on Monday, 12 Nov, 2018. There was initially a bearish trend during this period which started on 17 Oct, 2018 and went on till 24 Oct, 2018. The trend delivered -13.25% losses to investors. This was followed by a bullish trend that started on 25 Oct, 2018 and ended on 31 Oct, 2018. This bullish trend delivered +7.4% to investors.
TPRE had 5 profitable and 7 loss making months over the last year. During the last year, TPRE underperformed SP500 index on monthly return basis. TPRE was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -12.78% compared to -7.28% returned by SP500 index in Oct 2018. TPRE had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -28.86%. It is interesting to note that both TPRE and SP500 index significantly outperform during months when quarterly/annual results are announced.
If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.
-- Edmund Burke
TPRE 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 surge in TPRE's volatility from 28 Sep, 2018 to 14 Nov, 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 TPRE 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.
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