LSW Investing Profile Picture Investment Adviser

LSW Investing

LSW Investing

  • Founded 2010

Macro Themes

The objective of this portfolio is to seek out well-managed companies that will benefit from the global macro trends of the 21st century such as energy, infrastructure, agriculture, and scarce commodities. A portion of the fund will be placed into companies that pay out a portion of their income in dividends and have solid business models to continue growing their cash flows in the double digits annually. The other portion of the fund will seek out high growth companies that will have a high probability of outsized capital appreciation.
The foundations of long term investing involve spotting global macro trends through research, while having the patience for the investment thesis to come to fruition. Significant global macro trends for the 21st century include energy, infrastructure, and scarce commodities. These trends will be the portfolio's core focus.
The process begins with a top-down economic analysis to narrow down the sectors and industries to the most interesting opportunities.  Next we scan for undervalued companies emphasizing the small-capitalization space. The initial, brief scan points us to the most attractive stocks for additional analysis. Since we assume these companies should be benefiting from the aforementioned trends found in the economic analysis, each individual stock is then analyzed for its position to excel in periods of high growth. These companies must have solid balance sheets, while setting up projects that will generate high future cash flows.
We use the following position and sector constraints to mitigate risk of overconcentration in the portfolio. Positions are initiated at 3%-4%. Individual maximum positions are the lesser of 15% of the total portfolio or 5% of the outstanding shares of the company. Individual industry weightings are less than 50%. Cash positions are kept at a minimum of 5% of the total portfolio and are used for opportunistic acquisitions. The portfolio is monitored on a daily basis and includes analysis of stock price changes and any company-related and economic news to make sure all theories are still accurate.
The main sell discipline is a change in a company's fundamentals or growth strategy and comparing our valuation of a company to its current valuation. This discipline is vigorously applied.
There are no exceptions. If a company's fundamentals change for the worse and we feel the company becomes overvalued, the position will be sold.

Risk score

4
19.7%

Best 30 days

-25.0%

Worst 30 days

Performance

  • 5.0%
    30 day
  • 2.6%
    90 day
  • 19.8%
    365 day
Monthly vs S&P500
lsw investing - macro themes
-12.0% 12 months
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  • $10,000 subscription min
  • Margin account required
  • 1.5% fee

Replicability

100.0%
  • Replicable

Top 5 Holdings View all

41.2%
23.4%
20.5%
7.8%
7.0%

Model commentary

  1. The Fed QE3 gambit powers stocks and commodities

    25 September 2012

    The Fed will purchase $40 billion worth of agency backed securities each month.

  2. Hopes for a Fed stock market boost trump weaker earnings 17 August 2012
  3. US corporate earnings hit an air pocket 14 July 2012
  4. Hear those panic buttons going off? 11 June 2012
  5. Wild cards ahead for the economy and the markets 8 May 2012

show more


Performance detail

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

Performance

Inception January 04, 2011
as of May 23, 2013 Manager S&P 500 Average Subscriber
Past 30 days 5.0% 4.5% 5.0%
Past 90 days 2.6% 8.9% 2.4%
Past 365 days 19.8% 25.1% 17.7%
Since Inception (Annualized) 0.8% 11.6% -
2013 (YTD) 6.6% 15.7% 6.2%
2012 5.4% 13.4% -

Risk Metrics

Last 365 days
as of May 23, 2013 Manager S&P 500
Best 30 days 9.7% 8.2%
Worst 30 days -10.3% -7.0%
Volatility 13.4% 12.7%
Sharpe Ratio 1.47 1.97
Sortino Ratio 2.02 2.85
Maximum Drawdown -11.4% -7.7%
Value-at-risk (95%, 1 week) -3.1% -2.9%
vs. S&P 500
Information Ratio -0.56
Alpha 0.8%
Beta 0.78
R-Squared 0.55
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  • $10,000 subscription min
  • Margin account required
  • 1.5% fee

Latest transactions view all

Average trades per month 0.7
Executed Symbol Security Replicable Type Price
05/22/13 TLM TALISMAN ENERGY INC Yes Sell $11.86
05/22/13 BBEP BreitBurn Energy Partners LP Yes Sell $19.46
04/09/13 SDRL Seadrill Ltd Yes Buy $36.51
04/09/13 AHGP ALLIANCE HOLDINGS GP LP Yes Sell $52.04
03/22/13 CHKR CHESAPEAKE GRANITE WASH TRUS Yes Sell $13.41
03/18/13 VTG VANTAGE DRILLING CO Yes Sell $1.76
01/25/13 GLOG GasLog Ltd. Yes Buy $12.54
10/22/12 NNA Navios Maritime Acquisition Corporation Yes Sell $2.83


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 December 21, 2011. 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.


About investing

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