Prudent Value

  • Strategy Etfs / funds
Prudent Value concentrates assets in its best ideas (subject to reasonable diversification) and generally maintains its investment positions for extended periods of time.
In selecting among investment opportunities, careful assessment must be made of the risk profile of the various alternatives. In equity and debt (through ETFs) investing, risk comes in basically two forms: bankruptcy/default risk and market risk, with the greatest risk coming from the substantial costs that are incurred through bankruptcy/default. Prudent Value believes that both of these risks are best mitigated by investing in high quality assets at a discount price.
Our principle research methodology is as follows: First, seek high quality equity and/or debt investments within our circle of competence. Second, the underlying assets of these investments should possess strong balance sheets and generate free cash flows. Data sources include, but not limited to the following: 1) financial newspapers and magazines, 2) research materials prepared by others, 3) annual reports, and 4) company press releases.
Prudent Value's approach to diversification is to limit the size of each asset purchase, then to sell a stock if it becomes an uncomfortably large position in the portfolio.
Assets are generally sold when their share price reaches our intrinsic value or to minimize losses. Intrinsic value is an economic concept, estimating future cash flows discounted to present value.
During times of extreme market euphoria, the portfolio may hold large cash balances.



Month to date



Quarter to date



Year to date


Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 7.9%

    Best quarter

  • -5.0%

    Worst quarter

    • 1% fee
    • $20,000 min

Performance detail

Performance Portfolio inception Aug 17, 2011

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Month-to-date 1.5% 2.2%
Quarter-to-date -0.6% 3.6%
Last 365 Days 7.0% 9.7%
Since inception (Annualized) 6.0% 12.6%
2016 (YTD) 7.5% 9.9%
2015 -0.3% -0.7%
2014 6.9% 11.4%
2013 14.8% 29.6%
2012 3.4% 13.4%

Risk metrics Last 365 days

as of Dec 08, 2016 Manager (net of fees ) S&P 500
Volatility 9.4% 13.7%
Sharpe Ratio 0.70 0.67
Sortino Ratio 1.02 0.88
Maximum Drawdown -6.4% -12.0%
Value-at-risk (95%, 1 week) -2.2% -3.2%
vs. S&P 500
Information Ratio -0.48
Alpha 0.6%
Beta 0.65
R-Squared 0.90


  • Financial
  • Communications
  • Debt Fund
  • Technology
  • Consumer, Non-cyclical

Top 5 securities

View all

Portfolio commentary

  1. Profile Picture Outsourcing play 9 November 2016

    Here's why I bought a position in Robert Half International

  2. Profile Picture A wobbly bull market 25 July 2016
  3. Profile Picture How to play the market mood swings 25 April 2016
  4. Profile Picture Beware of the approaching bear 24 February 2016
  5. Profile Picture Smart portfolio moves for a stormy market 24 October 2015
Show more

Latest transactions Average trades per month 1.8

Executed Symbol Security Type Price
11/10/16 UL Unilever PLC Buy $39.68
11/09/16 O Realty Income Corp Buy $57.00
09/12/16 LQDT Liquidity Services Inc Sell $9.87
09/09/16 GILD Gilead Sciences Inc Buy $78.81
08/09/16 RLGY Realogy Holdings Corp Buy $26.95
07/29/16 RHI Robert Half International Inc Buy $36.78
06/02/16 IEMG iShares Core MSCI Emerging Markets ETF Buy $40.70
06/02/16 YNDX Yandex NV Sell $20.42
View all

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.