I employ a top down / bottom up analytical approach that allows me to create a concentrated portfolio of deep value and special situation investments. By holding a select group of stocks, I can own only the companies that meet my own strict investment criteria.
My goal is to find profitable companies with low debt that trade at a discount to their tangible assets. I seek companies that are profitable, or ones that my research suggests have a clear pathway to profit. My focus on valuation is part of my strategy to limit downside risk.
I use multiple and layered screening techniques to reduce an investment universe of about 10,000 stocks down to two or three possible candidates. I then further analyze those candidates and assign an estimated fair value to each one. I seek to take an initial position in a stock that meets all my criteria at a 50% discount to my estimated fair value.
I typically hold between 5 and 15 investments with the average holding making up 10% of the portfolio. Sometimes up to 20% of the portfolio may be in a single investment.
I sell or reduce a holding when it approaches my pre-determined fair market value, when market, sector, or company specific risk increases, or when the position becomes too large within the portfolio. I will also sell or reduce a position when I determine that there is a better, lower risk investment that can lower my overall portfolio risk.
My portfolio is usually long only, but I may include inverse Exchange Traded Funds (ETFs) at times of elevated market overvaluation and risk. I may also use inverse ETFs from time to time to hedge general portfolio risk and market exposure.
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.