19.23 -0.18 (-0.93%) Sell

TSLX is a falling knife, continues to bleed every investor trying to catch it

13 min read

TPG SPECIALTY LENDING, INC. has destroyed investor wealth on Friday. It delivered -0.93% to close at 19.23. It is currently trading -8% below it's 52 week high of 21.0.

[Themes containing TSLX]

Buy-and-Hold investors in TSLX experienced a maximum drawdown of -8.43% over the last three months. It delivered -5.27% during this bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals.


TSLX has been underperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 18 Apr, 2017 to 12 Jul, 2018. Over the last 2 years 11 months and 10 days, TSLX underperformed the SP500 index on 48% days. Which indicates that on days TSLX underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months TSLX was mostly loss making and delivered on average -0.08% per day. It's best return during this period (of +2.18%) was on Thursday, 20 Sep, 2018. While it's worst loss in the same period (of -1.85%) was on Monday, 10 Dec, 2018. The longest stort-term trends during this period were 4 profitable and losing days. The bullish trend (which returned +3.81%) started on 29 Oct, 2018 and went on till 1 Nov, 2018 while the bearish trend (which returned -1.67%) started on 27 Sep, 2018 and went on till 2 Oct, 2018.

The last 12 months saw TSLX's investors making profits in 6 months and incurring losses in 6 months. TSLX was less consistent in delivering monthly returs than SP500 index. TSLX significantly outperformed SP500 index in Jul 2018, when it returned +8.15% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. TSLX had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year.

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TSLX is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in TSLX's volatility from 18 Sep, 2018 to 8 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 TSLX 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 TSLX. Therefore, SP500 must receive a lower allocation than TSLX in your portfolio. SP500 index usually has shorter drawdown period than TSLX.

Based on your interest in TSLX you may find it interesting to know that NSPR has shown remarkable performance and deserves to be on every investors' watchlist.

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