Buyback Leaders THEME

1030.86 +1.45 (+0.14%) Sell

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

14 min read

~BUYBACKLEADERS was among the worst performers today. On a longer term basis, investors in Buyback Leaders made +0.01% per day. Tuesday's performance of +0.14% was a significant outperformance compared to it's daily average.

[Theme constituents]

Buy-and-Hold investors in ~BUYBACKLEADERS experienced a maximum drawdown of -16.76% over the last three months. It returned -16.02% during this strong down trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +10.43%.


~BUYBACKLEADERS has been underperforming the SP500 index in recent time, after having outperformed till 14 Nov, 2016. Over the last 2 years 2 months and 13 days, ~BUYBACKLEADERS underperformed the SP500 index on 48% days. Which indicates that on days ~BUYBACKLEADERS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~BUYBACKLEADERS was mostly loss making and delivered on average -0.27% per day. It's best return during this period (of +2.62%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -3.41%) was on Tuesday, 4 Dec, 2018. There was initially a bearish trend during this period which started on 21 Sep, 2018 and went on till 2 Oct, 2018. The trend delivered -2.6% losses to investors. This was followed by a bullish trend that started on 29 Oct, 2018 and ended on 1 Nov, 2018. This bullish trend delivered +5.59% to investors.

On monthly basis, ~BUYBACKLEADERS delivered profits in more months over the last year, than losses. ~BUYBACKLEADERS delivered profits less regularly than SP500 index. ~BUYBACKLEADERS was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -9.09% compared to -7.75% returned by SP500 index in Dec 2018. ~BUYBACKLEADERS had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both ~BUYBACKLEADERS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.
-- Franklin D. Roosevelt

~BUYBACKLEADERS 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 ~BUYBACKLEADERS's volatility from 19 Sep, 2018 to 2 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 ~BUYBACKLEADERS has significant positive skewness in it's return distribution. This indicates that investors can expect ~BUYBACKLEADERS to recover from drawdowns quickly. Which makes ~BUYBACKLEADERS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~BUYBACKLEADERS), two mid cap instruments that deserve special mention are EW and ABMD. They have significantly outperformed the overall market.

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