Investment Advisor

Analytic Investment

Investment Advisor,Analytic Investment

Education USC, NTHU, Taiwan
Qualifications MS Computer Engineering, BSEE/BSPME

Focus Value

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

The model seeks to capture equity mispricing opportunities due to market inefficiency, by continuously computing relative valuation of all stocks according to their fundamental factors, such as earning and sales ratios, cash flow, enterprise value, debt to equity, etc.

Contrary to buy-and-hold strategies that put investment capital on the same stocks over multi-year period, the model's computer algorithms constantly look for better opportunities to reuse current investment capital to buy undervalued stocks by selling existing overvalued stocks partially or in full. The computer algorithms ensure the same investment capital work harder to participate stock mispricing opportunities.

The model uses proprietary computer algorithms with the goals to maximize gains and minimize risks. With computer algorithms, exposure to risk is actively managed, human emotion and buy-sell bias are eliminated from the equity investing process, unnecessary market timing is avoided, and continuous participation of market is possible for long-term growth.

This is not a diversified portfolio. It typically holds around 15 to 20 stocks with annual portfolio turnover rate of about 600%. Individual stock weighting in the portfolio is calculated based its appreciation potential, and could be changed very frequently.

Positions are sold or reduced when stocks become more expensive relative to other stocks based on above valuation factors, and are replaced with stocks of cheaper valuations.

None.

Approach Quant/Technical , Value
Asset class Equity
Cap Bias Micro caps
Geography US
Subscribers7

Replicability

100.0%

Replicable

Top 5 Holdings View all

13.6%

12.0%

10.5%

6.2%

5.7%

JBSS
NLS
HCII
SMTX
TESS

Model commentary

Look for M&A from U.S. companies in search of a skilled workforce

15 November 2011

The US equity market put in a bottom on October 5th, the date of Steve Jobs’ death.
Even flat Q3 earnings could boost the U.S. equity … 20 October 2011
Keep your eye on corporate earnings 16 September 2011
Drawdown is unavoidable. The question is what you … 1 September 2011
Equity valuations remain cheap and earnings are … 9 August 2011

Performance detail

Manager
Russell 2000
S&P 500

30D 90D 365D SI

Performance

Inception August 25, 2010

as of May 15, 2012	Manager	Russell 2000	S&P 500	Average Subscriber
Past 30 days	-1.2%	-2.4%	-2.9%	-2.4%
Past 90 days	8.0%	-4.5%	-0.9%	5.8%
Past 365 days	-1.8%	-5.5%	0.1%	-8.7%
Since Inception (Annualized)	29.5%	15.7%	14.4%	-
2012 (YTD)	22.2%	4.9%	5.8%	17.3%
2011	-13.8%	-5.5%	0.0%	-19.8%

Risk Metrics

Last 365 Days

as of May 15, 2012	Manager	Russell 2000	S&P 500
Best 30 days	20.9%	20.3%	13.6%
Worst 30 days	-26.4%	-23.6%	-16.7%
Volatility	30.5%	32.9%	23.1%
Sharpe Ratio	-0.07	-0.17	-0.00
Sortino Ratio	-0.08	-0.25	-0.00
Maximum Drawdown	-35.5%	-29.0%	-18.8%
Value-at-risk (95%, 1 week)	-7.1%	-7.6%	-5.4%

	vs. Russell 2000	vs. S&P 500
Information Ratio	0.17	-0.10
Alpha	3.0%	0.0%
Beta	0.72	1.00
R-Squared	0.61	0.58

Latest transactions view all

Average trades per month 14.6

Executed	Symbol	Security	Replicable	Type	Price
04/23/12	XIN	XINYUAN REAL ESTATE CO L-ADR		Buy	$3.31
04/23/12	UCTT	ULTRA CLEAN HOLDINGS		Buy	$7.31
04/23/12	NLS	NAUTILUS INC		Buy	$2.61
04/23/12	TESS	Tessco Technologies Inc		Sell	$25.03
04/23/12	TA	TRAVELCENTERS OF AMERICA LLC		Sell	$5.76
04/23/12	LEE	Lee Enterprises Inc/IA		Sell	$1.14
04/16/12	LEE	Lee Enterprises Inc/IA		Buy	$1.29
04/16/12	HIMX	HIMAX TECHNOLOGIES INC-ADR		Buy	$2.17

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$10,000 subscription min
margin account required
2.3% fee

Important Information

1. Past performance is no guarantee of future results.

2. Performance of the model 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 that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More

3. Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More

4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.

5. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations and do not include cash, dividends and earnings distributions, or transaction costs. More

6. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

7. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Model 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. Model classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.

8. Top Replicable Holdings: These securities are currently held in the model manager's brokerage account. Those marked as "Replicable Holdings" currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.

9. Latest Transactions: These transactions were executed in the model manager's brokerage account. Those marked as "Replicable" () passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.

10. S&P 500 Index is an unmanaged index compiled by Standard & Poor´s Corp. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P 500 Copyright © 2012.

11. Dow Jones index data: CME Group Index Services, LLC 2012

Background provided by the manager
Analytic Investments Form ADV II

Analytic Investment