This portfolio invests in workouts. Workouts are special situations in which a corporate event sets the future value of a security. Such events include mergers, tender offers, going private transactions and liquidations. This portfolio will take advantage of these arbitrage opportunities without using margin or short positions.
This portfolio takes a disciplined value investing approach to identifying and investing in low risk opportunities in workouts, i.e. fat pitches. Special situations are examined through the lens of a value investor.
Workout opportunities are often difficult to find and track. The portfolio uses securities filings and financial media reports daily for corporate events that may lead to investment opportunities. Those special situations are then examined for risk factors and potential investment value.
This portfolio will typically hold between 5 and 15 positions depending on the number of workouts currently available. To some degree positions will be weighted by their risk adjusted probable return.
Most positions will be closed when a workout is completed and cash is paid out to shareholders. On occasion, a position will be sold before the completion of the workout if the market price approaches the workout value and a better opportunity exists. Positions will also be sold if the corporate event generating the special situation is canceled or drastically modified.
Depending on market conditions this portfolio also may invest in deeply discounted stocks that are trading below their estimated liquidation value on the assumption that either the stock’s price will recover or a corporate action will be taken, such as a liquidation to return value to shareholders. The portfolio may also occasionally exploit value opportunities that result from stock price declines following the canceling of a merger deal or other such event.
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 that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More
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 portfolio. 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
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 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 (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.
These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" 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.