Core International Portfolio
The Barrack Yard Core Portfolio strategy seeks to compound investors’ money in real terms over time. The objective is to buy great global businesses at good prices and good businesses at great prices. It also seeks to benefit from compounding dividend payments and underlying business value-creation.
We start by identifying major long-term global trends, both to identify potential investments and looming risks. The strategy seeks to own businesses of lasting value that stand to benefit from long term trends. It also seeks companies with healthy balance sheets that have the resources to navigate through an uncertain future.
Each investment is subject to its own risk controls. These controls include valuation measures, profitability ratios, measures of financial strength, historical growth rates, dividend payments, competitive advantage, and thematic relevance.
We read regulatory filings; newspapers including The New York Times, Financial Times and Barron’s; company disclosures; and third-party research from numerous sources. We rely on our experience and our industry networks built over several decades. We also relate the news stories of the day to our research about world history and foreign affairs.
As part of our screening approach, we often seek companies with 10 years or more of uninterrupted profitability, a strong return on invested capital, and a return on equity of greater than 15 for non-infrastructure companies. We generally avoid companies that rely on the capital markets for short-term funding. We look for companies with strong free cash flow yields, and ones that are attractive based on price to earnings and price to enterprise value. We also compare current 3-year trailing earnings to the prior 10-year earnings in an effort to find historical bargains.
The strategy seeks to be well diversified within the equity asset class. We typically hold 22-25 companies and have a 4-5% target allocation for each stock. Barrack Yard will use cash as risk-mitigation tool if the market is trading at a point where we cannot find businesses we want to own at attractive price points.
We typically buy companies with the idea of holding them for a long time. We will selectively sell stocks, however, when we think markets have become optimistic, when we believe we have made a mistake, or when a company’s valuation appears expensive relative to other available opportunities.
We might break our own guidelines and buy a company that has incurred a loss in the past decade (particularly if it's an accounting loss); if its current cash flow is not positive; if its financial strength is not up to our rigorous standard; or if it doesn't pay a dividend. We would only buy these not-so-great businesses at what we believe are very distressed prices to provide what we believe to be a margin of safety.
Covestor inception February 25, 2013
|as of September 15, 2014
||Manager (net of fees)
|Past 30 days
|Past 90 days
|Past 365 days
|Since Covestor inception (Annualized)
Last 365 days
|as of September 15, 2014
||Manager (net of fees)
|Best 30 days
|Worst 30 days
|Value-at-risk (95%, 1 week)
||vs. MSCI World
||vs. S&P 500
Average trades per month 3.9
Past performance is no guarantee of future results.
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".
Average client returns are calculated by Covestor and are composed of the average, time-weighted 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.
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.
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.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
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.
Transactions that are 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 investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.