Gator Capital Profile Picture Investment Adviser

Gator Capital

Gator Capital

  • Founded 2008

Small Cap

The Gator Small Cap Portfolio invests in 30 companies 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 30 companies at a time. New positions are typically given 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.

Risk score

4
35.5%

Best 30 days

-24.4%

Worst 30 days

Performance

  • 0.0%
    30 day
  • 8.6%
    90 day
  • 45.0%
    365 day
Monthly vs S&P500
gator capital - small cap
18.0% 12 months
Subscribe
  • $10,000 subscription min
  • Margin account required
  • 1.5% fee

Replicability

100.0%
  • Replicable

Top 5 Holdings View all

6.1%
5.5%
5.5%
5.5%
5.0%

Model commentary

  1. Publicly Traded PE Firms: Business Franchises Not as Volatile as Their Stock Prices

    13 October 2011

    The current sell-off in the stock market is presenting a second opportunity to buy the publicly traded private equity firms.

  2. Citigroup's collateral damage from Bank of America 29 September 2011
  3. Value investors tend to both buy too early and sell too early 6 September 2011
  4. The fight to buy Southern Union (ETP, SUG, WMB) 7 July 2011
  5. 5 things I'm looking for in a oil stock investment - Derek Pilecki, Gator Capital (BEXP, DEN, MRO) 30 June 2011

show more


Performance detail

  • Manager
  • Russell 2000
  • S&P 500
30D 90D 365D SI

Performance

Inception December 28, 2008
as of June 18, 2013 Manager Russell 2000 S&P 500 Average Subscriber
Past 30 days 0.0% 0.4% -0.9% -0.2%
Past 90 days 8.6% 5.0% 6.0% 7.5%
Past 365 days 45.0% 29.4% 22.8% 39.0%
Since Inception (Annualized) 37.5% 18.0% 15.3% -
2013 (YTD) 23.9% 17.7% 15.8% 21.3%
2012 22.2% 14.6% 13.4% 16.7%
2011 4.5% -5.5% -0.0% 1.2%
2010 35.6% 25.3% 12.8% -
2009 82.7% 25.2% 23.5% -

Risk Metrics

Last 365 days
as of June 18, 2013 Manager Russell 2000 S&P 500
Best 30 days 12.1% 10.5% 8.2%
Worst 30 days -4.7% -7.9% -7.0%
Volatility 15.2% 15.6% 12.4%
Sharpe Ratio 2.95 1.87 1.83
Sortino Ratio 4.37 2.70 2.74
Maximum Drawdown -6.7% -11.0% -7.7%
Value-at-risk (95%, 1 week) -3.5% -3.6% -2.9%
vs. Russell 2000 vs. S&P 500
Information Ratio 2.41 2.94
Alpha 14.4% 15.6%
Beta 0.89 1.07
R-Squared 0.83 0.76
Subscribe
  • $10,000 subscription min
  • Margin account required
  • 1.5% fee

Latest transactions view all

Average trades per month 0.8
Executed Symbol Security Replicable Type Price
06/18/13 PFSI PennyMac Financial Services Inc Yes Buy $21.77
06/11/13 BBRG Bravo Brio Restaurant Group Inc Yes Buy $18.45
06/11/13 GME GameStop Corp Yes Sell $37.93
05/03/13 LCC US AIRWAYS GROUP INC Yes Buy $17.03
04/29/13 FSCI Fisher Communications Inc Yes Sell $41.32
04/29/13 PMFG PMFG Inc Yes Sell $5.84
03/28/13 COSH Cooper-Standard Holding Inc Yes Buy $41.64
02/26/13 COWN COWEN GROUP INC-CLASS A Yes Sell $2.68


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. 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.

6. 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

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

8. 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.

9. 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.

10. 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.

11. 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/Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies Copyright © 2013.

12. This model was launched on Covestor on August 10, 2010. Trading history prior to launch was audited by Covestor and is consistent with current model strategy. Manager performance incorporates this historical data. This data has not been audited by an independent firm.


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