The Alpha Trapper strategy takes a long-short approach. It seeks balanced growth for the long investments. I also take short positions in ETFs in an effort to help me hedge the total investment risk and to add to potential returns.
I try to estimate the potential long-term returns for every position, whether it is long or short. I seek long-term investments. But I will shorten the holding periods for individual positions if my long-term expectations are invalidated or if price targets are reached sooner than expected.
For the short positions, I gravitate toward what I believe are poorly constructed ETFs that in my opinion will lose value under most market conditions.
All research data comes from publicly available resources. Those include company reports and regulatory filings. I examine both current and historical data in researching every potential investment.
The Alpha Trapper strategy typically holds 3 to 5 long positions. Most are in stock and bond index funds. Short holdings could range from 0 to as many as 10 positions. I attempt to allocate the most capital to what I believe are the best overall opportunities.
Positions are typically closed when I have either reached my price target or when conditions have changed to invalidate my original expectations.
For commonly shorted ETFs, I use mathematical formulas to determine how much to sell or buy back. I may make decisions on a case-by-case basis for ETFs that I do not short very often.
I may buy individual company stocks if my research suggests that there are ones that are extremely undervalued.
In addition, I may buy stocks to hedge an existing short position. For example, the strategy may buy a natural gas royalty trust to offset a short position in a natural gas ETF.
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.