USFD continues to mint money for it's investors
18 Dec, 201813 min read
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US FOODS HOLDING CORP. delivered good returns on Tuesday. It grew by +0.67% to close at 31.74. It is currently trading -21% below it's 52 week high of 40.6.
USFD showed a up trend over the last 3 months. During this period USFD grew by +1.02% and saw a maximum drawdown of -11.28%. There was a long signal during this period which returned +0.35%.
USFD has been outperforming the SP500 index in recent time. Over the last 2 years and 7 months, USFD outperformed the SP500 index on 51% days.
During the last three months USFD delivered losses on 56% days. However, it still managed to end this period in a profit. It's best return during this period (of +13.0%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -4.21%) was on Monday, 5 Nov, 2018. There was initially a bullish trend during this period which started on 12 Oct, 2018 and went on till 19 Oct, 2018. The bullish trend returned +8.17% to investors. This was followed by a bearish trend that started on 22 Oct, 2018 and ended on 29 Oct, 2018. This bearish trend lost -7.59% of investor capital.
On monthly basis, USFD delivered profits and losses in equal number of months. USFD delivered profits less regularly than SP500 index. USFD significantly outperformed SP500 index in Nov 2018, when it returned +13.75% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. USFD had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Jul 2018 to Oct 2018) during which period it delivered -23.92%.
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USFD 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 USFD's volatility from 19 Sep, 2018 to 6 Nov, 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 USFD has significant positive skewness in it's return distribution. This indicates that investors can expect USFD to recover from drawdowns quickly. Which makes USFD a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.
SP500 index has more chance of extreme outcomes than USFD. Therefore, SP500 must receive a lower allocation than USFD in your portfolio. SP500 index usually has shorter drawdown period than USFD.
On a general note (since you are interested in USFD), two instruments that have been extremely volatile in recent times are VIPS and NVCN. Investors in these instruments should consider reducing their exposure (to VIPS and NVCN) and diversifying their portfolios.
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