Prudent Value Profile Picture Investment Adviser

Prudent Value

Prudent Value


Prudent Value


  • Asset class Multi asset class
  • Strategy Stock selection
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

0.8%

Month to date

MTD

0.3%

Quarter to date

QTD

3.3%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 7.9%

    Best quarter

  • -5.0%

    Worst quarter

  • $20,000 investment min
  • 1% fee

Performance detail

  • Manager (net of fees )

Exposure

21.4%
18.3%
17.2%
10.3%
6.6%
  • Financial
  • Communications
  • Debt Fund
  • Technology
  • Consumer, Cyclical

Top 5 securities

7.2%
7.0%
5.3%
4.3%
3.8%
View all

Portfolio commentary

Performance Portfolio inception August 17, 2011

as of May 26, 2016 Manager (net of fees ) S&P 500
Month-to-date 0.8% 1.2%
Quarter-to-date 0.3% 1.5%
Last 365 Days 0.0% -1.6%
Since inception (Annualized) 5.7% 12.4%
2016 (YTD) 3.3% 2.3%
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 May 26, 2016 Manager (net of fees ) S&P 500
Volatility 11.0% 16.6%
Sharpe Ratio - 0.03 - 0.11
Sortino Ratio - 0.04 - 0.16
Maximum Drawdown -9.3% -14.1%
Value-at-risk (95%, 1 week) -2.5% -3.9%
vs. S&P 500
Information Ratio 0.23
Alpha 0.7%
Beta 0.63
R-Squared 0.92

Latest transactions Average trades per month 1.8

Executed Symbol Security Type Price
05/25/16 LC LendingClub Corp Buy $4.47
05/06/16 HRB H&R Block Inc Buy $19.80
03/14/16 MSFT Microsoft Corp Sell $53.50
02/01/16 AXP American Express Co Sell $54.70
01/29/16 AXP American Express Co Buy $53.35
01/29/16 NLY Annaly Capital Management Inc Sell $9.33
01/28/16 AXP American Express Co Buy $54.10
11/24/15 AXP American Express Co Buy $71.78
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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 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".
  3. 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.
  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. 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.
  6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. More
  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 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 your account 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 include management fees, transaction costs and expenses.