Patrick B Clark Profile Picture Individual Investor

Patrick Clark

Section Chief, Compliance,Defense and Space

  • Qualifications Pursuing BBA/CFA
  • Investment Experience 15 Years

Market Neutral Growth

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.
The model follows systematic trading rules so that trade decisions are not made based on emotion, but rather on previously developed rules designed to preserve capital. This system has proven to drastically reduce portfolio volatility and grow capital in both bull and bear markets. The model’s maximum drawdown is substantially lower than that of the market as a whole.
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.
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.
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%.
None.

Risk rating

4
Leverage: 1.43
16.2%

Best 30 days

-16.1%

Worst 30 days

Performance

  • 2.8%
    30 day
  • -7.4%
    365 days
  • 5.2%
    Since Inception
    August 18, 2009
Monthly vs S&P500
Sparkbar Graph, Market Neutral Growth Investment Model Performance versus S&P500
-10.0%

Last 12 months

  • $5,000.00 subscription min
  • Margin account required
  • 1.5% fee

Replicability

142.8%
16.0%
62.6%
21.4%
84.0%
  • Leverage
  • Non-replicable
  • Holdings
  • Cash
  • Replicable

Top 5 Holdings View all

2.7%
7.4%
36.8%
3.6%
-2.5%
  • GE
  • VXX
  • DBP
  • BLX
  • MIPS

Model commentary

  1. This is a rare opportunity to buy precious metals

    6 October 2011

    Here's the ETF I bought to take advantage of it.

  2. Right now, protection against inflation is the … 13 September 2011
  3. If you've made money in August, you managed risk … 25 August 2011
  4. The sooner Germany reverts to a sovereign cur… 13 July 2011
  5. My commodity ETF of choice to hedge against i… 18 May 2011

show more


Performance detail

  • Manager
  • Dow Jones Moderate Conservative
  • S&P 500
30D 90D 365D SI

Performance

Inception August 18, 2009
as of February 08, 2012 Manager Dow Jones Moderate Conservative S&P 500 Average Subscriber
Past 30 days 2.8% 3.8% 5.4% 1.3%
Past 90 days -7.2% 4.6% 8.9% -6.3%
Past 365 days -7.4% 6.2% 1.9% -
Since Inception (Annualized) 2.1% 10.0% 13.4% -
2012 (YTD) 3.0% 4.2% 7.3% 0.5%
2011 -7.8% 3.0% -0.0% -
2010 -3.2% 11.0% 12.8% -

Risk Metrics

Last 365 Days
as of February 08, 2012 Manager Dow Jones Moderate Conservative S&P 500
Best 30 days 8.5% 5.4% 13.6%
Worst 30 days -10.7% -5.2% -16.7%
Volatility 16.5% 7.5% 23.2%
Sharpe Ratio -0.46 0.80 0.08
Sortino Ratio -0.63 1.09 0.10
Maximum Drawdown -18.0% -6.8% -19.4%
Value-at-risk (95%, 1 week) -3.8% -1.7% -5.4%
vs. Dow Jones Moderate Conservative vs. S&P 500
Information Ratio -0.90 -0.40
Alpha -12.0% -7.6%
Beta 0.91 0.26
R-Squared 0.17 0.13

Latest transactions view all

Average trades per month 6.6
Executed Symbol Security Replicable Type Price
02/08/12 APOG APOGEE ENTERPRISES INC Yes Buy to cover $14.62
01/31/12 RIGL RIGEL PHARMACEUTICALS INC Yes Sell $9.75
01/24/12 BAP CREDICORP LTD Yes Buy $111.40
01/24/12 TKLC TEKELEC Yes Buy to cover $10.99
01/24/12 ACHN ACHILLION PHARMACEUTICALS INC Yes Buy to cover $10.34
01/20/12 LPHI LIFE PARTNERS HOLDINGS INC Yes Sell $4.61
12/01/11 VXX iPATH S&P 500 VIX Short-Term Futures ETN Yes Buy $41.25
11/22/11 RDEA ARDEA BIOSCIENCES INC Yes Sell short $18.15
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  • $5,000.00 subscription min
  • Margin account required
  • 1.5% 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


About investing

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