9.59 -0.07 (-0.72%) Sell

TPRE continues its fall as more investors loose confidence

13 min read

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%.

[Themes containing TPRE]

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.

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

Based on your interest in TPRE you may find it interesting to know that TPNL and TNDM have both shown remarkable performance this year and deserve to be on every investors' watchlist.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter