Jose Betancourt Profile Picture Individual Investor

JIB

Portfolio Manager,Financial Services

  • Education Drexel University
  • Qualifications Business Administration - Concentration in Finance

Cash Flow

Fundamental and long-term, uses bottom-up analysis and is not restricted by industry, country or market cap.
Investment approach is 100% fundamental and long term. Focuses on companies with the following features regardless of the industry, country or market cap:

- Positive free cash flow. Companies that throughout the years have maintained a positive free cash flow and that thanks to their business model can continue being free cash flow positive for many more years.
- Negative Net Debt.  Companies that do not incur in much debt for their every day operations, that always keep a lower yearly short/long debt balance compared to the cash balance.
- Companies’ shares are being quoted at a lower price than their intrinsic value, always taking a safety margin into consideration.

Primarily uses Internet research. Sources include Edgaronline, Google Finance, Yahoo Finance and Morningstar.

Screens the market for companies that comply with the investment approach using customs screens. Then, analyzes specific companies with a proprietary Excel spreadsheet.  That information together with the analysis of both, the business model and the people managing the company, helps assess if a company is a candidate to purchase.

Always invests with the idea of maintaining a cash reserve (including cash from margin account) for future purchase opportunities.
If by some reason a company did not have any positive returns for several years and/or there are probabilities that the company business model is broken with catastrophic consequences, would consider selling all shares.
In this everyday changing world, there will always be exceptions, but currently, no relevant exceptions.

Risk rating

4
16.1%

Best 30 days

-21.1%

Worst 30 days

Performance

  • 0.3%
    30 day
  • -16.9%
    365 days
  • 5.9%
    Since Inception
    June 08, 2010
Monthly vs S&P500
Sparkbar Graph, Cash Flow Investment Model Performance versus S&P500
-15.2%

Last 12 months

  • $5,000.00 subscription min
  • Margin account required
  • 1.1% fee

Replicability

0.6%
4.4%
95.1%
99.4%
  • Non-replicable
  • Holdings
  • Cash
  • Replicable

Top 5 Holdings View all

0.5%
0.6%
1.0%
0.4%
0.4%
  • BPI
  • NSP
  • APOL
  • CRAI
  • CSCO

Model commentary

  1. What Covestor managers are buying: Apollo Group (APOL, ATV, VIMC)

    1 April 2011

  2. Apple's great, if you have a lot of money and … 30 March 2011
  3. What Covestor managers are buying: Tellabs and … 23 March 2011

show more


Performance detail

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

Performance

Inception June 08, 2010
as of February 09, 2012 Manager Russell 2000 S&P 500 Average Subscriber
Past 30 days 0.3% 7.9% 4.6% -
Past 90 days -0.5% 10.8% 7.0% -
Past 365 days -16.9% 1.9% 2.4% -
Since Inception (Annualized) 3.5% 18.9% 15.5% -
2012 (YTD) 0.7% 11.3% 7.5% -
2011 -11.1% -5.5% -0.0% -22.0%

Risk Metrics

Last 365 Days
as of February 09, 2012 Manager Russell 2000 S&P 500
Best 30 days 16.1% 20.3% 13.6%
Worst 30 days -21.1% -23.6% -16.7%
Volatility 25.0% 32.9% 23.2%
Sharpe Ratio -0.68 0.05 0.09
Sortino Ratio -0.80 0.08 0.12
Maximum Drawdown -34.1% -29.6% -19.4%
Value-at-risk (95%, 1 week) -5.8% -7.6% -5.4%
vs. Russell 2000 vs. S&P 500
Information Ratio -0.81 -1.02
Alpha -19.3% -19.2%
Beta 0.54 0.75
R-Squared 0.50 0.48

Latest transactions view all

Average trades per month 1.8
Executed Symbol Security Replicable Type Price
12/21/11 TLAB TELLABS INC Yes Sell $3.82
12/21/11 TGX THERAGENICS CORP Yes Sell $1.66
12/21/11 SPRO SMARTPROS LTD   Sell $1.81
12/21/11 CHOP CHINA OPPORTUNITY ACQUISITIO Yes Sell $3.33
12/21/11 EFUT EFUTURE INFORMATION TECHNOLO   Sell $4.43
12/21/11 CSCO Cisco Systems Inc Yes Sell $17.92
12/21/11 NTE NAM TAI Electronics Inc Yes Sell $4.98
12/21/11 EEI ECOLOGY AND ENVIRON -CL A Yes Sell $15.13
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  • $5,000.00 subscription min
  • Margin account required
  • 1.1% fee

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


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