Hedged Value


  • Additional attributes Short
  • Strategy Stocks
Cable Car Capital invests globally in public companies. The firm screens public companies using an intensive, fundamental research process that seeks to identify mispriced securities using a value-oriented approach with a multi-year time horizon. Cable Car Capital capitalizes opportunistically on shorter-term or special situation (e.g. spinoffs, reorganizations, merger arbitrage) opportunities while maintaining a concentrated core portfolio of contrarian/out-of-favor but high-quality longs and over-hyped or mismanaged single-name shorts.
For non-U.S. public companies, Cable Car utilizes American Depository Receipts which are called ADRs. These are receipts of shares of foreign companies that trade on the U.S. stock market exchanges.
Cable Car Capital looks for investment opportunities in assets priced below intrinsic value, irrespective of whether or not they have a low multiple. The firm treats each long or short stock selection as a discrete investment in its’ hedged long/short portfolio. Cable Car seeks to invest in situations with a favorably skewed risk/reward profile, ideally with a margin of safety and in which it has a differentiated view from other market participants.

Cable Car Capital conducts detailed bottom-up financial analysis of companies and industries through careful reading of public filings, questioning of management, discussion with industry experts, and financial forecasting. Cable Car observes assets over time and seeks attractive entry points at inflection points in the business.
Cable Car’s portfolio is concentrated and typically holds 5-10 long positions and  10-15 short positions. No single holding will represent more than 30% of net assets. Gross and net exposure, cash allocation, and number of holdings are functions of idea flow rather than target weightings. As a result, Cable Car may hold fewer positions. In general, Cable Car Capital maintains a net long bias and smaller individual position sizes on the short side. Position size is based on conviction and valuation.
Cable Car Capital closes positions that have reached its estimate of fair value, where the risk/reward tradeoff is no longer acceptable, or where events have disproven the underlying thesis. The firm also opportunistically takes advantage of unwarranted price changes to adjust position weightings.
None.

Performance

-1.0%

Month to date

MTD

-1.9%

Quarter to date

QTD

11.0%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 18.7%

    Best quarter

  • -4.6%

    Worst quarter

    • 1.5% fee
    • $30,000 min
  • Required: Margin account

Performance detail

Performance Portfolio inception Aug 22, 2013

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Month-to-date -1.0% 2.2%
Quarter-to-date -1.9% 3.6%
Last 365 Days 10.1% 9.7%
Since inception (Annualized) 18.5% 9.7%
2016 (YTD) 11.0% 9.9%
2015 26.6% -0.7%
2014 3.9% 11.4%

Risk metrics Last 365 days

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Volatility 14.5% 13.7%
Sharpe Ratio 0.66 0.67
Sortino Ratio 1.50 0.88
Maximum Drawdown -7.1% -12.0%
Value-at-risk (95%, 1 week) -3.4% -3.2%
vs. S&P 500
Information Ratio 0.02
Alpha 8.0%
Beta 0.26
R-Squared 0.06

Exposure

18.7%
-10.8%
3.1%
-2.1%
-0.8%
  • Consumer, Non-cyclical
  • Financial
  • Technology
  • Consumer, Cyclical
  • Basic Materials

Top 5 securities

16.8%
-5.1%
4.7%
-3.6%
3.3%
View all

Portfolio commentary

  1. Profile Picture Trump Trade 1 December 2016

    A new US administration means new regulatory priorities

  2. Profile Picture Unlocking home security giant ADT's value 8 March 2016
  3. Profile Picture Spiritual investing lessons from India 15 January 2016
  4. Profile Picture Portfolio adjustments in a turbulent market 18 November 2015
  5. Profile Picture Another reason US healthcare costs are soaring 15 October 2015
Show more

Latest transactions Average trades per month 11.3

Executed Symbol Security Type Price
12/08/16 TRTC Terra Tech Corp Buy $0.30
12/08/16 VMRI Valmie Resources Inc Buy $0.75
12/08/16 FNBC First NBC Bank Holding Co Sell short $8.20
12/02/16 FNBC First NBC Bank Holding Co Sell short $8.03
11/30/16 DVAX Dynavax Technologies Corp Buy $4.38
11/22/16 FNBC First NBC Bank Holding Co Sell short $7.75
11/22/16 TRTC Terra Tech Corp Buy to cover $0.27
11/18/16 RTRX Retrophin Inc Buy $19.93
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 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. Average client returns are calculated by Covestor and are composed of the asset-weighted daily 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, and earnings distributions, and reflect the deduction of Covestor advisory fees, brokerage and other commissions and expenses actually paid by clients.
  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 have been calculated by Covestor using a time-weighted calculation of daily index valuations. More information here.
  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 of Portfolio Managers 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 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.
  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 exclude or are net of management fees, transaction costs and expenses.
  11. 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.
  12. This portfolio uses borrowed funds or leverage to fund investments. 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.