Patrick B Clark

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Career Air Force Noncommissioned Officer stationed overseas for 18 years

Personal Information

Qualifications
Pursuing BBA/CFA

Date of Birth
December 05, 1969

Job Title
Section Chief, Compliance

Industry
Defense and Space

Investment Experience
15 Years

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Important Information

Past performance is no guarantee of future results.

Performance of the model manager’s account is calculated by Covestor on a daily time-weighted basis, including cash 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 subscriber performance (“Avg Sub”) is calculated by Covestor and is composed of the average, daily, time weighted returns of all active subscriptions to this model. These returns include cash, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More »

Month to Date returns and Since Inception returns are revised daily. All other returns (month, 3 month, year to date, et al) are calculated as of the most recent month end date.

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

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Primary goal is to preserve the purchasing power of the dollar as manager believes we're in an inflationary environment. Minimizes the risks of long-only or short-only with a market-neutral model and uses systematic trading decisions to eliminate emotion from the equation.

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INDIVIDUAL
INVESTOR

Inception date

Risk Score

Strategy

Asset class

Cap. bias

Long/Short

Current holdings

Avg. trades per month

Latest trade

CAL

Subscribers

Performance and Risk

Performance Summary (as at end of )

Manager*

S&P 500

YTD

Inception	Manager* Manager Model Manager performance. Net of commissions.	S&P 500	Avg. Sub. Avg. Sub. Avg Subscriber performance. Net of commissions and fees.
Month to date (%)
1 month (%)
3 month (%)
1 year (%)
Annualized since inception (%)	?	?	?
Since inception (%)			n/a
Sharpe (since inception)			n/a

* Includes trades that fail Covestor Trading Rules

Past performance is not indicative of future performance

Strategy

Summary

The primary goal of this model is to preserve the purchasing power of the dollar. The model is market-neutral and attempts to minimize the risks of a long-only or short-only strategy. It uses systematic trading decisions in order to eliminate emotion from the equation.

Research

Takes long equity positions in companies with very strong balance sheets. These companies have the resources to survive and even thrive during economic downturns and the cash reserves which allow them to gain market share while cash strapped competitors go bankrupt. Takes short equity positions in companies with very weak balance sheets. The model finds profit potential in holding these short positions as the market realizes that the company is living on borrowed time and the stock price falls.

Allocation Discipline

Market-neutral account using one long-only account and one short-only account. Each short position represents 4% of the short-only portion of the model. The long-only portion of the model is always 100% invested. The long-only model consists of 30 positions, with each position sized at 3.3% of the overall long-only model value.

Sell Discipline

In the short-only portion of the model, if any position grows to 5%, it is closed. The result is a reduction in short exposure during bullish times. During bearish times, short positions are closed when they shrink to 2% of the short-only portion of the model and then replaced with two new 4% short positions. In the long-only portion of the model, the winners run and the losers are cut early by closing long positions when the original 3.3% position grows to 5% or shrinks to 2.5%.

Exceptions

None.

Asset Allocation

Top Holdings (excluding cash) (as at end of )

Symbol	Security	Allocation(%)
GLW	Corning Incorporated	3.44
BLX	Banco Latinoamericano de Comercio Exterior, S.A.	3.40
LEG	Leggett & Platt, Incorporated	3.23
TNE	Tele Norte Leste Participacoes S.A.	3.15
SNE	SONY CORP-SPONSORED ADR	3.12
	Top holdings total (excluding cash)	16.33%
	Cash	75.76%
	Total number of holdings	53
	Leverage	1.07

View all holdings »

Investment Report

September 2010

The overall market continues to look bearish technically. As the market moves lower, my trading rules have reduced my long bias which currently stands at 25%. I expect the market to continue lower in the intermediate term.

The US dollar as measured by the ETF UUP has been very volatile in recent months. It has gone from a seven month high volume uptrend, to a sharp two month plummet which broke below long term support. Over the past few weeks, UUP has risen back to its previous support level as measured by its 30 week moving average. I suspect that this level will act as resistance now and that the dollar is in the early stage of an intermediate term downtrend. However, with the extreme volatility of this ETF, I would not be surprised to see UUP temporarily shoot through this resistance level before continuing lower.

The real estate ETF, IYR, looks poised to move higher at this point. It is coming up from 30 week MA support and looks bullish in the very short term. However, this uptrend is over 18 months old now and may be close to a long term reversal. The fundamentals of the real estate market are confusing. In the absence of government intervention, this market would have crashed a long time ago. How long can the federal government prop it up? That is the question that needs to be answered to successfully trade IYR. From a technical perspective, I just see that that uptrend looks tired. The trend line slope is not as strong in recent months and volume has been relatively weak.

I expect the market to continue lower in the next few months and I look forward to the transition from a long bias to a short bias if this forecast materializes.

2010

2009

December

History

Monthly Performance (%)

Q1 Q2 Q3 Q4

Month	Return	Avg. Sub.	Risk	Performance

Transactions

Latest Transactions (as at end of )

Executed	Symbol	Security	Type	Price
September 01, 2010	CAL	CONTINENTAL AIRLINES-CL B	Buy	$23.09
September 01, 2010	DGX	QUEST DIAGNOSTICS	Buy	$44.92
August 31, 2010	LPHI	LIFE PARTNERS HOLDINGS INC	Sell	$14.85
August 30, 2010	NNI	NELNET INC-CL A	Sell	$22.50
August 30, 2010	NNI	NELNET INC-CL A	Sell	$22.50
August 19, 2010	SNP	CHINA PETROLEUM & CHEM-ADR	Buy	$80.61
August 19, 2010	WAC	WALTER INVESTMENT MANAGEMENT C	Sell short	$16.30
August 19, 2010	SVNT	SAVIENT PHARMACEUTICALS INC	Sell short	$15.03

View all transactions »