Knowing When to Take Your Gains

Chartz with Jartz - Yesterday, the Investment Management Team (IMT) decided to both trim from and add to positions in our GAME Series Allocations. The IMT has been very active in the TIME Tilt Allocation selling out of positions that make large jumps in a short period of time. Regis Corporation (RGS) was one of our holdings that experienced high volatility since our rebalance on January 22nd. RGS saw a four period stint of 50% upside and a sell off down to 8% above it's buy point. Using technical analysis, the IMT decided to add to the position near a level close to the original buy spot. RGS then bounced off the 200 Day Moving Average and started a strong upward trend. The calculation of semi-deviation allows an analyst to understand how much of the standard deviation risk occurs below the mean or zero. In other words, semi-deviation allows you to see whether the volatility is more than likely going to result in a downward move. Because TIME Tilt is our least risk averse allocation, the IMT is able to find more volatile stocks like RGS. The semi-deviation on RGS is 4.13% and the Total Standard Deviation is 5.27%. Of that 5.27% volatility, 78% is a result of a shift below the mean. As a result, the IMT decided to trim half the position and take an average realized gain of around 40% as we considered this a victory. We then used the cash raised to enter into a position in Nuvasive, Inc (NUVA). Check back soon for more updates on our GAME Series allocation. - Jake (GAME Tracker)

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