My strategy seeks to find stocks that offer growth potential. I spend a lot of time conducting both bottom-up and top-down research in an effort to avoid overpaying for my investments. My goal is to buy individual stocks that I believe offer significant value at any given point in the market cycle. I tend to favor dividend-paying stocks that also meet my growth criteria.
I attempt to find companies that have an opportunity to appreciate in most macro environments. I try to fully understand a company’s business model. If I am not comfortable with it, I will not invest in it. I also apply both traditional and my own subjective measures of valuation in an attempt to find value.
I start by looking at industries, sectors and stock-specific situations where I personally believe that I can find fair value. I look at fundamental ratios and evaluate them in the context of historical ranges, industry/peer ranges, the term structure of interest rates, and the economic cycle. Once I identify a possible investment, I perform additional research that includes reviewing regulatory filings, company presentations and conference call archives.
This is a fairly concentrated portfolio that typically holds between 8 and 25 positions. The size of the position I take is usually related to my confidence in that particular investment idea. Individual investments rarely, if ever, exceed 20% of the portfolio. No single industry or industry group is meant to make up more than 40% of the portfolio.
Positions are closed for any of the following reasons: 1) the fundamentals at a particular company have changed, or there is new information about a company or one of its competitors; 2) I believe that the valuation is no longer attractive; 3) I may need to make room for another idea; 4) a position reaches 20% of the portfolio; or 5) if there is a negative review of my investment thesis in the company.
Past performance is no guarantee of future results.
Performance of the Portfolio 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 and positions that fail Covestor's trading rules, as a result, actual client returns will differ. Covestor advisory fees are simulated and applied retro-actively to present the portfolio return "net-of-fees".
Average client returns are calculated by Covestor and are composed of the asset-weighted average returns of all active client investments (some of which may contain investment restrictions) to the underlying portfolio. These daily average returns are then linked together for the timeframe presented. These returns include cash, dividends, earnings distributions, brokerage commissions and Covestor advisory fees.
All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
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.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio 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. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
The checked transactions passed Covestor's trading rules and were eligible for investment at the time of execution, subject to individual client constraints. Eligibility may change over time. Actual client investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.