Dan Plettner Profile Picture Individual Investor

Dan Plettner

Financial Services

  • Education New York University (MBA), Miami University (BA Magna Cum Laude)
  • Investment Experience Approximately 20 years
Secrets of a Top Performer
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Well-Intentioned Activism

This model seeks to benefit from the presence of observed, well-intentioned activism in the Closed-End Fund space. Activism in Closed-End Funds is a historical mechanism for unlocking shareholder value. The model seeks to maintain positions to the conclusion of observed Activism, with minimal turnover.
The model seeks to take positions only in funds where profile traits may attract, or already have attracted what is perceived as well-intentioned Activism.  Positions here may be unique to this model, given the model's narrow focus.
Various private research techniques are used in effort to locate opportunities.  Qualitative research focuses on under-followed securities. For this model, research seeks to identify Closed-End Funds which appear likely beneficiaries of current or forward looking Activism Campaigns.

The model manager has no control over any activism campaign and knows that on occasion Activism results in "Greenmail" or benefits not shared by all public shareholders. Accordingly, the model manager intends to assess the profile of each Activism target. The model seeks to avoid being a shareholder in targets in where Activism campaigns are less likely to result in a benefit shared by all public shareholders.
Diversification will vary depending on the number of opportunities believed appropriate for the strategy, and conviction in such beliefs. Diversification of underlying positions can also exist within each Closed-End Fund, but ultimately, there is no mandate on the number of Closed-End Fund positions taken by the model.
When an Activism situation is believed likely to benefit all public shareholders, the account modeled here intends to maintain a position to the conclusion of any Activism. Such is not a mandate. In the event that a previously observed instance of Activism appears less likely to result in significant and equal benefits for all Public shareholders, the manager aims to exit at what is perceived opportune time. The model also may exit and/or re-enter positions based on valuations, timeliness, alternate opportunities within this style, etc.
Shareholders of constituent Closed-End Funds to this model will at times receive proxies from management and from Activists (commonly called "dissidents") to vote on Board members or Proposals. Covestor's model manager does not advise those subscribers on how to vote.  Furthermore, Covestor does not vote proxies on behalf of its clients. In addition, Covestor’s Model Managers do not provide advice to subscribers regarding proxies. For additional information, contact Client Services at 866.825.3005.

This model is focused on only one of the model manager's "styles" for Closed-End Fund investing. To be clear, the model manager has never been an Activist himself. The model manager's investing history includes voting proxies as believed to be an ideal fashion to benefit himself as an ordinary shareholder. However, through July 2010 the model manager has never made a single Closed-End Fund proposal. This model is not intended to facilitate Activism, rather to participate in common benefits to all shareholders to the extent (if any) that observations and research make possible.

Risk rating

3
13.1%

Best 30 days

-16.0%

Worst 30 days

Performance

  • -5.3%
    30 day
  • 1.0%
    365 days
  • 32.1%
    Since Inception
    August 01, 2010
Monthly vs S&P500
Sparkbar Graph, Well-Intentioned Activism Investment Model Performance versus S&P500
5.6%

Last 12 months

  • $50,000 subscription min
  • 1.1% fee

Replicability

76.5%
23.5%
  • Replicable
  • Non-replicable

Top 5 Holdings View all

21.4%
17.8%
15.0%
11.6%
11.5%
  • TTF
  • MGU
  • IRL
  • GCH
  • CSP

Model commentary

  1. In this uncertain market, portfolio balance is key

    21 May 2012

    The broad market is facing some serious headwinds.

  2. The closed-end fund that could see a catalyst … 26 March 2012
  3. These Closed-End Funds Should Ride Out Market … 7 March 2012
  4. Well-priced stocks will ride out these market … 21 February 2012
  5. Stocks will likely crush Treasuries over the next … 10 January 2012

show more


Performance detail

  • Manager
  • First Trust Composite CEFT
  • S&P 500
30D 90D 365D SI

Performance

Inception August 01, 2010
as of May 21, 2012 Manager First Trust Composite CEFT S&P 500 Average Subscriber
Past 30 days -5.3% -2.8% -4.5% -
Past 90 days -2.6% -2.9% -3.4% -
Past 365 days 1.0% 2.4% -1.3% -
Since Inception (Annualized) 16.7% 8.4% 10.4% -
2012 (YTD) 8.6% 5.2% 4.6% -
2011 6.0% 3.2% 0.0% -

Risk Metrics

Last 365 Days
as of May 21, 2012 Manager First Trust Composite CEFT S&P 500
Best 30 days 13.1% 9.3% 13.6%
Worst 30 days -16.0% -13.0% -16.7%
Volatility 21.0% 13.6% 23.2%
Sharpe Ratio 0.04 0.16 -0.06
Sortino Ratio 0.05 0.18 -0.08
Maximum Drawdown -19.0% -13.1% -18.8%
Value-at-risk (95%, 1 week) -4.9% -3.2% -5.4%
vs. First Trust Composite CEFT vs. S&P 500
Information Ratio -0.13 0.27
Alpha -1.3% 2.1%
Beta 1.39 0.84
R-Squared 0.81 0.86

Latest transactions view all

Average trades per month 4.3
Executed Symbol Security Replicable Type Price
04/05/12 CSP American Strategic Income Portfolio III Yes Buy $6.94
04/02/12 BIF Boulder Growth & Income Fund Inc Yes Sell $6.30
02/23/12 SGF SINGAPORE FUND INC Yes Buy $13.19
02/13/12 IRL NEW IRELAND FUND INC Yes Buy $7.72
02/10/12 BIF Boulder Growth & Income Fund Inc Yes Buy $6.24
02/09/12 GCH Greater China Fund Inc/The Yes Buy $11.51
02/09/12 AWP Alpine Global Premier Properties Fund Yes Buy $6.49
01/19/12 IRL NEW IRELAND FUND INC Yes Buy $7.02
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  • $50,000 subscription min
  • 1.1% fee

Important Information

Important Information

1. Past performance is no guarantee of future results.

2. Performance of the model 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 that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More

3. Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More

4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.

5. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations and do not include cash, dividends and earnings distributions, or transaction costs. More

6. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

7. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Model 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. Model classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.

8. Top Replicable Holdings: These securities are currently held in the model manager's brokerage account. Those marked as "Replicable Holdings" currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.

9. Latest Transactions: These transactions were executed in the model manager's brokerage account. Those 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 subscription trade activity may vary.

10. S&P 500 Index is an unmanaged index compiled by Standard & Poor´s Corp. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P 500 Copyright © 2012.

11. Dow Jones index data: CME Group Index Services, LLC 2012


About investing

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