PRIVATEEQUITY THEME investors disappointed by market underperformance

Private Equity delivered massive losses on Tuesday. It returned -0.02% to close at 1005.41. On a day when the overall market breadth was 34%, it closed higher than 18% of the market. In comparison, the benchmark SP500 index closed today at +0.01%.

[Theme constituents]

~PRIVATEEQUITY is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +11.49% for investors.

Trend

Monthly Performance

Alpha (outperformance)

Heatmap

Volatility

Return distribution

~PRIVATEEQUITY has been underperforming the SP500 index in recent time, after having outperformed till 30 Aug, 2016. Over the last 2 years 11 months and 14 days, ~PRIVATEEQUITY underperformed the SP500 index on 51% days.

During the last three months ~PRIVATEEQUITY was mostly loss making and delivered on average -0.23% per day. It's best return during this period (of +2.02%) was on Thursday, 1 Nov, 2018. While it's worst loss in the same period (of -3.61%) was on Monday, 17 Dec, 2018. There was initially a bullish trend during this period which started on 19 Sep, 2018 and went on till 21 Sep, 2018. The bullish trend returned +1.02% to investors. This was followed by a bearish trend that started on 17 Oct, 2018 and ended on 24 Oct, 2018. This bearish trend lost -5.21% of investor capital.

On monthly basis, ~PRIVATEEQUITY delivered profits and losses in equal number of months. ~PRIVATEEQUITY delivered profits less regularly than SP500 index. ~PRIVATEEQUITY was also a more risky investment than SP500 index as it's worst month in the last year, Dec 2018, returned -9.02% compared to -7.75% returned by SP500 index in Dec 2018. ~PRIVATEEQUITY 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 ~PRIVATEEQUITY and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's good to have money and the things that money can buy, but It's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy.
-- George Lorimer

~PRIVATEEQUITY is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in ~PRIVATEEQUITY'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 ~PRIVATEEQUITY has significant positive skewness in it's return distribution. This indicates that investors can expect ~PRIVATEEQUITY to recover from drawdowns quickly. Which makes ~PRIVATEEQUITY a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

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

On a general note (since you are interested in ~PRIVATEEQUITY), two small cap instruments that deserve special mention are ZBRA and AAXN. They have significantly outperformed the overall market.