Call 1.866.825.3005 for more information
Investment Advisor
Crabtree Technology
Crabtree Technology is a science and technology, long-only equity model. It seeks to capture alpha through a portfolio of companies that simultaneously a) consistently generate cash, b) hold on to or increase their market share, while c) executing on operational and financial plans. These three factors are known as the Crabtree Attributes.
It is our real-world experience that a portfolio of companies that possess the Crabtree Attributes can generate alpha over periods of time measured in quarters and years. Therefore, we focus on knowing a few key things about every company in our investable universe (about 1000 stocks), rather than knowing "everything" about relatively few companies in that same universe.
The model will not invest in ETFs, but will invest in ADRs.
The model will not invest in ETFs, but will invest in ADRs.
Candidates for inclusion in the portfolio are found through a proprietary quantitative screen that has been in continuous use for over 11 years. The screen attempts to predict future health of a company based on present health. One example is positive cash flow. The screen is run in mid-February, mid-May, mid-August and mid-November.
Stocks located through this process are subject to further fundamental analysis to further validate their Crabtree Attributes.
Stocks located through this process are subject to further fundamental analysis to further validate their Crabtree Attributes.
We own 50 positions at all times. The portfolio is re-balanced every three months. New positions each make up 2%, and existing positions that remain in the portfolio are increased or decreased to 2% if they have moved materially away (usually 50 basis points or more) from a 2% position.
Because we re-balance every three months, the sell discipline is simply a function of whether a company is continuing to exemplify the Crabtree Attributes of cash flow, market share and execution. If a company isn't doing those things, it is sold, regardless of price or price action, in addition to maintaining portfolio balance.
We reserve 10% (five positions) of the Crabtree Fund for companies exemplifying the Crabtree Attributes, but which aren't spotted by our quantitative model. This can be because they are either recently public, are a spin-off of an existing public company or because they have a premium valuation that we believe is deserved because of a superior and potentially dominant business model.
- Approach Growth , Sector Focus
- Geography US
- Sectors Technology
Model commentary
IBM continues to confound and amaze
9 February 2012
Here's an example of why we focus almost exclusively on a company’s business model and market opportunity.
show more