Analytic Investment

Earnings Growth



  • Additional attributes Small cap
  • Strategy Stocks
The Earnings Growth Portfolio buys stocks that have reported positive earnings surprises relative to analyst estimates and received subsequent positive earnings estimate revisions. It seeks to find stocks that the manager believes are likely to report earnings surprises that may help to drive the stocks higher.

Stocks are sold when they no longer exhibit high earning revisions and high earning surprises relative to other growth stocks.

Hengfu invests in both U.S. stocks and foreign companies that are listed on U.S. exchanges.
Hengfu’s computer algorithm-based strategy attempts to take advantage of stocks that may be mispriced. It seeks to buy the stocks that his research suggests are undervalued and sell the ones that he considers to be overvalued.
The Earnings Growth Portfolio uses a proprietary computer algorithm designed to maximize gains and minimize risks. This approach seeks to remove human emotion and buy-sell biases from the investing process.
This diversified portfolio typically holds about 25 stocks with an annual portfolio turnover rate between 100% and 200% under normal market conditions.  The portfolio may hold a proportion in cash when the model provides a bearish signal.
Stocks are sold when they no longer exhibit high earning revisions and high earning surprises relative to other growth stocks. They are then replaced with stocks that have stronger earning revisions and higher earning surprises.
None.

Portfolio Manager performance

3.7%

Month to date

MTD

4.6%

Quarter to date

QTD

9.1%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 18.9%

    Best quarter

  • -23.1%

    Worst quarter

    • 1.5% fee
    • $60,000 min
  • Required: Margin account

Portfolio Manager performance graph

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. Client account performance is displayed on the client dashboard.

Performance Portfolio inception November 23, 2010

as of May 25, 2017 Manager (net of fees ) Russell 2000 S&P 500
Month-to-date 3.7% -1.2% 1.3%
Quarter-to-date 4.6% -0.2% 2.2%
Last 365 Days 21.8% 21.2% 15.5%
Since inception (Annualized) 10.8% 10.6% 11.6%
2017 (YTD) 9.1% 1.9% 7.9%
2016 -3.9% 19.5% 9.5%
2015 -1.0% -5.7% -0.7%
2014 27.4% 3.5% 11.4%
2013 43.6% 37.0% 29.6%
2012 15.1% 14.6% 13.4%
2011 -14.3% -5.5% -0.0%

Risk metrics Last 365 days

as of May 25, 2017 Manager (net of fees ) Russell 2000 S&P 500
Volatility 11.3% 15.4% 9.6%
Sharpe Ratio 1.84 1.32 1.52
Sortino Ratio 2.89 1.83 1.89
Maximum Drawdown -4.8% -8.4% -5.6%
Value-at-risk (95%, 1 week) -2.6% -3.6% -2.2%
Russell 2000 vs. S&P 500
Information Ratio 0.05 0.91
Alpha 8.8% 6.4%
Beta 0.57 0.93
R-Squared 0.60 0.63

Exposure

53.9%
9.1%
8.2%
6.7%
6.6%
  • Consumer, Non-cyclical
  • Communications
  • Technology
  • Consumer, Cyclical
  • Industrial

Holdings are only visible to invested clients.

If you'd like to discuss this portfolio, contact client relations at 1.866.825.3005.

Portfolio commentary

  1. Profile Picture Gloomy consumers threaten US growth July 31, 2015

    Consumer spending is at risk as sentiment hits a 10-month low.

  2. Profile Picture Why bank stocks are back in favor June 02, 2015
  3. Profile Picture How to profit from the merger mania April 16, 2015
  4. Profile Picture What you missed: Twitter, RadioShack, jobs, and volatility February 09, 2015
  5. Profile Picture What PetSmart’s buyout means for investors December 17, 2014
Show more

Transactions are only visible to invested clients.

If you'd like to discuss this portfolio,
contact client relations at 1.866.825.3005.

Manager's other portfolios

Analytic Investment - Focus Growth Focus Growth

You might also like by other managers…

US Equity All Cap Undervalued by Greenwich Wealth Management LLC

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-Covestor performance information may include performance of non-Covestor client accounts. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of 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 retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any Covestor client account investing in this portfolio. The performance in a Covestor client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their Covestor account and reviewing their customized dashboard.
  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. 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 displayed have been calculated by Covestor using daily benchmark prices and do not include dividend income. More information here. For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. 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 of Portfolio Managers is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts 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.
  9. This portfolio uses short selling. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  10. This portfolio uses borrowed funds or leverage to fund investments. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.