Prudent Value

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.

Performance

1.3%

Month to date

MTD

1.3%

Quarter to date

QTD

1.3%

Year to date

YTD

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 August 17, 2011

as of January 17, 2017 Manager (net of fees ) S&P 500
Month-to-date 1.3% 1.3%
Quarter-to-date 1.3% 1.3%
Last 365 Days 14.3% 20.6%
Since inception (Annualized) 6.1% 12.6%
2017 (YTD) 1.3% 1.3%
2016 7.4% 9.5%
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 January 17, 2017 Manager (net of fees ) S&P 500
Volatility 8.4% 12.2%
Sharpe Ratio 1.63 1.65
Sortino Ratio 2.53 2.29
Maximum Drawdown -4.8% -5.7%
Value-at-risk (95%, 1 week) -2.0% -2.8%
vs. S&P 500
Information Ratio -1.21
Alpha 1.1%
Beta 0.65
R-Squared 0.88

Exposure

22.0%
17.6%
13.0%
11.3%
7.6%
  • Financial
  • Communications
  • Debt Fund
  • Technology
  • Consumer, Non-cyclical

Top 5 securities

6.1%
5.5%
4.6%
4.1%
3.3%
View all

Portfolio commentary

  1. Profile Picture Trump stock plays January 13, 2017

    Omega Healthcare Investors may be worth a serious look

  2. Profile Picture Outsourcing play November 09, 2016
  3. Profile Picture A wobbly bull market July 25, 2016
  4. Profile Picture How to play the market mood swings April 25, 2016
  5. Profile Picture Beware of the approaching bear February 24, 2016
Show more

Latest transactions Average trades per month 1.8

Executed Symbol Security Type Price
January 17, 2017 LB L Brands Inc Sell $61.30
January 11, 2017 LB L Brands Inc Buy $60.72
January 06, 2017 SRG Seritage Growth Properties Buy $41.97
January 03, 2017 BSCJ Guggenheim BulletShares 2019 Corporate Bond ETF Buy $21.15
January 03, 2017 BSJJ Guggenheim BulletShares 2019 High Yield Corporate Bond ETF Buy $24.19
January 03, 2017 JLS Nuveen Mortgage Opportunity Term Fund Buy $23.94
December 09, 2016 OHI Omega Healthcare Investors Inc Buy $30.86
November 10, 2016 UL Unilever PLC Buy $39.68
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 displayed have been calculated by Covestor using daily benchmark prices and do not include dividend income. More information here. For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  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.