Investment Companies THEME

913.17 -23.54 (-2.58%) Sell

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Prayers for INVESTMENTCOMPS THEME investors as it was among the worst performers

14 min read

Investment Companies was among the worst performers today. It delivered -2.58% to close at 913.17. During the last week it delivered -4.45% and saw a maximum drawdown of -5.49% before bouncing back.

[Theme constituents]

Buy-and-Hold investors in ~INVESTMENTCOMPS experienced a maximum drawdown of -9.85% over the last three months. It delivered -8.18% 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. The net profit from Short signals was +4.42%.


~INVESTMENTCOMPS has been outperforming the SP500 index in recent time. It showed significant underperformance (compared to the SP500 index) from 20 Nov, 2017 to 8 Oct, 2018. Over the last 1 year and 1 month, ~INVESTMENTCOMPS underperformed the SP500 index on 50% days. Which indicates that on days ~INVESTMENTCOMPS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months ~INVESTMENTCOMPS was mostly loss making and delivered on average -0.13% per day. It's best return during this period (of +1.89%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -2.58%) was on Friday, 7 Dec, 2018. The longest stort-term trend during this period was 6 losing days, which started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -5.21% of investor capital.

The last 12 months saw ~INVESTMENTCOMPS's investors making profits in 6 months and incurring losses in 6 months. ~INVESTMENTCOMPS was less consistent in delivering monthly returs than SP500 index. ~INVESTMENTCOMPS was also a less risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -5.28% compared to -7.28% returned by SP500 index in Oct 2018. ~INVESTMENTCOMPS had a shorter streak of profitable months than SP500 index. It only went up in 3 straight months during the last year. It is interesting to note that both ~INVESTMENTCOMPS and SP500 index significantly outperform during months when quarterly/annual results are announced.

Know what you own, and know why you own it.
-- Peter Lynch

~INVESTMENTCOMPS is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in ~INVESTMENTCOMPS's volatility from 10 Sep, 2018 to 7 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that ~INVESTMENTCOMPS has positive skewness in it's return distribution. This indicates that investors can expect ~INVESTMENTCOMPS to make attempts to recover from drawdowns quickly. Which makes ~INVESTMENTCOMPS a good candidate for momentum based trading on short-term bullish trends or counter-trends.

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

Based on your interest in ~INVESTMENTCOMPS you may find it interesting to know that AAXN is a small cap that has shown remarkable performance and deserves to be on every investors' watchlist.

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