Centric Core

  • Additional attributes Large cap
  • Strategy Stocks
My strategy seeks to invest in large, liquid, high-quality companies that fall between value and growth definitions. As a result, I invest in stocks that I personally believe do not meet the holdings requirements of many other professional money managers. Centric Core portfolio seeks to complement other equity investment strategies. It tends to take on less risk and offer slightly less reward than the S&P 500 over time. Most importantly, my own research suggests that it is less correlated to value and growth than the S&P 500 Index, making it a potentially better source of diversification.
I believe my Centric Core portfolio is an alternative to strategies that perform similarly to the S&P 500 Index. It focuses on roughly 45 large-cap U.S. stocks that are not classified as either growth or value. As a result, it tends to perform differently than growth or value investments, similar to the way that mid-cap stocks perform differently than large and small caps.
I start with a list of U.S. stocks with market values generally above $14 billion. Then I apply a value metric that combines earnings yield, dividend yield and a sector-adjusted book value ratio. Then I define the 20% of stocks in the middle of my valuation metric as Centric. The result is a list of about 45 stocks that I believe offer a favorable risk-reward ratio and can potentially help equity investors to complement their other investment strategies.
The strategy is managed to maintain industry and sector neutrality. Stocks are equal-weighted within their respective sectors, in an effort to create a portfolio that is centric by size, as well as by style. The portfolio is rebalanced quarterly.
Stocks are sold either because of a drop in value that makes them no longer attractive to me or because the stocks are no longer in between value and growth parameters.



Month to date



Quarter to date



Year to date


Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 8.3%

    Best quarter

  • -4.4%

    Worst quarter

    • 0.5% fee
    • $30,000 min

Performance detail

Performance Portfolio inception Jun 05, 2013

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Month-to-date 1.4% 2.2%
Quarter-to-date 2.0% 3.6%
Last 365 Days 10.4% 9.7%
Since inception (Annualized) 9.3% 10.0%
2016 (YTD) 9.7% 9.9%
2015 -1.7% -0.7%
2014 13.1% 11.4%

Risk metrics Last 365 days

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Volatility 12.1% 13.7%
Sharpe Ratio 0.82 0.67
Sortino Ratio 1.06 0.88
Maximum Drawdown -9.6% -12.0%
Value-at-risk (95%, 1 week) -2.8% -3.2%
vs. S&P 500
Information Ratio 0.20
Alpha 2.0%
Beta 0.85
R-Squared 0.93


  • Consumer, Non-cyclical
  • Technology
  • Communications
  • Industrial
  • REIT

Top 5 securities

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Portfolio commentary

  1. Profile Picture Portfolio tune-up 8 November 2016

    Smaller-cap value stocks have performed well

  2. Profile Picture Market mood shift 12 October 2016
  3. Profile Picture Beware the madness of crowds 1 August 2016
  4. Profile Picture Long road ahead for stocks 8 July 2016
  5. Profile Picture Time to rethink core-satellite portfolios 9 June 2016
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Latest transactions Average trades per month 8.2

Executed Symbol Security Type Price
11/03/16 XOM Exxon Mobil Corp Buy $83.40
11/03/16 CBS CBS Corp Buy $55.78
11/03/16 VTR Ventas Inc Buy $61.86
11/03/16 BIIB Biogen Inc Buy $276.57
11/03/16 NXPI NXP Semiconductors NV Buy $99.47
11/03/16 RTN Raytheon Co Buy $134.25
11/03/16 BRK/B Berkshire Hathaway Inc Buy $143.86
11/03/16 EIX Edison International Buy $71.15
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Important Information

  1. Past performance is no guarantee of future results.
  2. Performance of the Portfolio Manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of 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 retroactively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted daily 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, and earnings distributions, and reflect the deduction of Covestor advisory fees, brokerage and other commissions and expenses actually paid by clients.
  4. 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.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. 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. More information here.
  7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
  8. 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 of Portfolio Managers is available upon request. Portfolio classifications are provided by Covestor, and are intended to serve as a general guide.
  9. Not all transactions listed will appear in accounts due to Covestor's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  10. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. For certain portfolios we use an investable ETF as a benchmark, in these cases returns exclude or are net of management fees, transaction costs and expenses.