401 Advisor Profile Picture Investment Adviser

401 Advisor

Founder,Financial Services,401 Advisor

  • EducationUniversity of Rochester
  • QualificationsBA Economics
  • Investment Experience20+ years - Winner of the 2008 Charles H. Dow award
  • Founded1993

Dividend and Income Plus


  • Asset class Equity
  • Strategy Yield
The Dividend and Income Plus portfolio attempts to provide investors with stable value while seeking a target yield of 8%. We attempt to buy high-yielding securities that our research suggests have the financial ability to maintain and possibly raise dividends. We keep as much as 20% of the portfolio liquid for hedging purposes to maintain principal.
We strive to provide stable value while potentially generating a high yield. We typically invest 80% in domestic securities (U.S. stocks, preferred stocks, ETFs, also know as Exchange Traded Funds), and 20% in cash or a U.S. Index fund ETFs for principal stability. Our goal is to manage downside risk, reduce volatility, and sustain capital appreciation. We invest in dividend stocks in an effort to protect investments and reinvests dividends to avoid share erosion through ill-timed distributions at market lows.
We conduct fundamental research using financial statements and other publicly available information. We first performs a top-down overview to assess future dividend prospects and employ award-winning proprietary technical analysis to determine a long, short, or neutral position. We attempt to maximize the effectiveness of hedges by identifying the most appropriate sector based on correlation to the overall portfolio.
The portfolio typically holds a minimum of 10 income-producing securities, plus one or two additional market long or short positions. Holdings tend to increase as individual securities are added and decrease as more ETFs are selected.
We emphasize income generation rather than market return, including low priced securities with stable dividends, and reevaluate those that reduce or suspend dividends. We attempt to hedge against market losses by purchasing short or leveraged-short ETFs in the sector, making it possible to collect dividends while potentially minimizing or reversing portfolio risk.
None.

Performance

2.9%

Month to date

MTD

2.9%

Quarter to date

QTD

3.0%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 13.1%

    Best quarter

  • -8.2%

    Worst quarter

  • $20,000 investment min
  • 1.5% fee

Performance detail

  • Manager (net of fees )

Performance Portfolio inception March 04, 2010

as of July 22, 2016 Manager (net of fees ) S&P 500
Month-to-date 2.9% 3.6%
Quarter-to-date 2.9% 3.6%
Last 365 Days -5.0% 3.5%
Since inception (Annualized) 6.0% 10.9%
2016 (YTD) 3.0% 6.4%
2015 -3.9% -0.7%
2014 3.6% 11.4%
2013 9.2% 29.6%
2012 6.0% 13.4%
2011 3.2% 0.0%

Risk metrics Last 365 days

as of July 22, 2016 Manager (net of fees ) S&P 500
Volatility 14.2% 17.2%
Sharpe Ratio - 0.38 0.18
Sortino Ratio - 0.53 0.25
Maximum Drawdown -19.2% -13.3%
Value-at-risk (95%, 1 week) -3.3% -4.0%
vs. S&P 500
Information Ratio - 0.95
Alpha -7.6%
Beta 0.71
R-Squared 0.73

Exposure

38.0%
17.7%
12.5%
9.4%
8.2%
  • Equity Fund
  • Financial
  • MLP
  • Consumer, Non-cyclical
  • Debt Fund

Top 5 securities

17.5%
14.9%
9.8%
9.4%
8.2%
View all

Portfolio commentary

  1. 401-advisor/_profile-35x35.jpg Why Apple is a great dividend play

    9 May 2016

    Apple has plenty to offer income-focused investors

  2. 401-advisor/_profile-35x35.jpg Retirement: the new rules 29 April 2016
  3. 401-advisor/_profile-35x35.jpg Rate hike? Bring it on! 17 November 2015
  4. 401-advisor/_profile-35x35.jpg Too early for the bears to growl 2 March 2015
  5. 401-advisor/_profile-35x35.jpg Is volatility really such a bad thing for investors? 9 September 2014
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Latest transactions Average trades per month 1.4

Executed Symbol Security Type Price
11/03/14 BKCC BlackRock Capital Investment Corp Buy $8.74
11/03/14 YYY YieldShares High Income ETF Buy $22.96
11/03/14 GSK GlaxoSmithKline PLC Buy $45.42
11/03/14 KKR KKR & Co LP Buy $21.35
11/03/14 PSP PowerShares Global Listed Private Equity Portfolio Buy $11.03
10/20/14 RIG Transocean Ltd Buy $29.23
10/20/14 AMLP Alerian MLP ETF Buy $18.47
10/20/14 PFF iShares US Preferred Stock ETF Buy $39.44
View all

Important Information

  1. Past performance is no guarantee of future results.
  2. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and broker commissions. Manager returns include trades and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. More
  7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
  8. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  9. Not all transactions listed will appear in your account due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  10. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns include management fees, transaction costs and expenses.