Gator Capital

Small Cap



  • Additional attributes Small cap
  • Strategy Stocks
The Gator Small Cap Portfolio invests in 30 companies, typically ones with market capitalizations of less than $3 billion. We approach buying stocks as if we were a private equity company buying a company's total assets. We believe that the best companies to own are ones with strong competitive advantages, attractive business models, and management teams that are aligned with shareholder interests.
We look for companies with strong business franchises that are trading below what we see as their future earnings potential. In evaluating a company's worth, we also take into account what a private equity or strategic buyer might pay for it. The model also seeks stocks with a catalyst that could help to unlock value for shareholders, such as a new CEO, or a long-term growth rate change.
Fundamental research is conducted on each prospective investment. We review earnings releases and earnings conference call transcripts, as well as investment presentations. In some cases, we schedule calls with company management so we can better understand the business and ask questions. We then create an investment thesis and buy the stock only if we think its prospects are superior to our existing holdings.

This investment model will own about 30 companies at a time. New positions are typically given about a 3.5% weight. Positions are rebalanced if they become too large. The model will continue to hold stocks that we purchased as small caps even if they appreciate to more than $3 billion, provided we still believe in that company's prospects.

We will sell if the strategic positioning of the company has materially changed. New holdings are constantly evaluated in the portfolio. Existing positions must constantly compete for investment capital against potential positions.
None.

Portfolio Manager performance

-2.8%

Month to date

MTD

-2.1%

Quarter to date

QTD

-1.6%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 20.5%

    Best quarter

  • -19.8%

    Worst quarter

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

Portfolio Manager performance graph

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. Client account performance is displayed on the client dashboard.

Performance Portfolio inception August 10, 2010

as of May 23, 2017 Manager (net of fees ) Russell 2000 S&P 500
Month-to-date -2.8% -1.4% 0.6%
Quarter-to-date -2.1% -0.4% 1.5%
Last 365 Days 11.0% 24.3% 17.1%
Since inception (Annualized) 10.2% 11.8% 11.9%
2017 (YTD) -1.6% 1.8% 7.1%
2016 11.3% 19.5% 9.5%
2015 -24.5% -5.7% -0.7%
2014 -2.4% 3.5% 11.4%
2013 47.0% 37.0% 29.6%
2012 20.4% 14.6% 13.4%
2011 3.0% -5.5% -0.0%

Risk metrics Last 365 days

as of May 23, 2017 Manager (net of fees ) Russell 2000 S&P 500
Volatility 15.6% 15.6% 9.7%
Sharpe Ratio 0.64 1.50 1.67
Sortino Ratio 0.96 2.11 2.10
Maximum Drawdown -10.6% -8.4% -5.6%
Value-at-risk (95%, 1 week) -3.6% -3.6% -2.3%
Russell 2000 vs. S&P 500
Information Ratio -1.93 -0.62
Alpha -9.2% -9.3%
Beta 0.91 1.29
R-Squared 0.81 0.64

Exposure

42.7%
22.9%
10.8%
7.6%
5.4%
  • Financial
  • Consumer, Cyclical
  • Consumer, Non-cyclical
  • Energy
  • REIT

Holdings are only visible to invested clients.

If you'd like to discuss this portfolio, contact client relations at 1.866.825.3005.

Transactions are only visible to invested clients.

If you'd like to discuss this portfolio,
contact client relations at 1.866.825.3005.

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Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-Covestor performance information may include performance of non-Covestor client accounts. 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. None of the performance information displayed on this page is based on the actual performance of any Covestor client account investing in this portfolio. The performance in a Covestor client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their Covestor account and reviewing their customized dashboard.
  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 displayed have been calculated by Covestor using daily benchmark prices and do not include dividend income. More information here. For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. 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.
  8. 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.
  9. 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.
  10. This portfolio uses borrowed funds or leverage to fund investments. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. 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.