Individual Investor

Robert Freedland

Ophthalmologist,Hospital and Health Care

Education Princeton University; University of California, Davis
Qualifications AB, MD
Investment Experience Managing own investments for 42 years, active stock blogger/podcaster for 7 years

Sustained Momentum

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

This model is designed to invest in ten stocks that represent the overall best performance from a group of fifty stocks that I follow. Any stocks in the overall group that decline 8% are sold and new names are added. Stocks that drop out of the top ten shall be replaced as indicated.

Stocks are added to the overall list that represents what I view as potential long-term winners based on underlying fundamentals, performance and my understanding of potential long-term opportunity of each company. They are not removed from the list unless they drop 8%, at which point they are replaced by other names.

I utilize secondary research including easily available sources such as Yahoo Finance, Seeking Alpha, Morningstar.com, StockCharts.com, and Motley Fool. I look for sustained and positive earnings growth with earnings and revenue surprise on the upside, positive free cash flow, reasonable valuation, and a strong technical direction to their charts. From these names I select stocks to add to my overall watchlist and monitor their individual performance. The top ten of the list are included in this model based on their past performance within this list of stocks.

My main focus is to identify stocks performing well regardless of their industry. The concentration of the portfolio may vary from concentrated to diversified depending on the individual performance of the stocks in the larger list.

Stocks will be sold when they are no longer in the top ten of my larger list of holdings. Within the larger list of stocks, any that drop 8% from selection price are also dropped from the list and new names are added as room allows.

I reserve the right to sell individual stocks that I believe will have a significantly negative impact when I feel quicker action is required. However, my bias shall be to ignore most news reports and allow the stock price and the price performance of other stocks to dictate my trading.

Replicability

100.0%

Replicable

Top 5 Holdings View all

12.6%

10.0%

9.6%

8.6%

8.4%

Cash
RMD
JCI
VRX
DIS

Model commentary

Lumber Liquidators is riding the housing recovery

12 April 2013

Lumber Liquidators last earnings report blew past expectations.
Generic drugmaker Mylan is a smart healthcare play 19 March 2013
Lumber Liquidators is riding the housing revival 19 March 2013
Here's why I dumped Ford and bought Colgate Palmolive 18 March 2013
Starbucks' double shot: It's both a US recovery and China play 28 January 2013

Performance detail

Manager
S&P 500

30D 90D 365D SI

Performance

Inception December 26, 2011

as of May 22, 2013	Manager	S&P 500	Average Subscriber
Past 30 days	3.3%	5.9%	-
Past 90 days	6.8%	10.2%	-
Past 365 days	18.5%	25.7%	-
Since Inception (Annualized)	15.9%	21.1%	-
2013 (YTD)	10.7%	16.1%	-
2012	11.8%	13.4%	-

Risk Metrics

Last 365 days

as of May 22, 2013	Manager	S&P 500
Best 30 days	9.1%	8.2%
Worst 30 days	-6.2%	-7.0%
Volatility	10.8%	12.7%
Sharpe Ratio	1.71	2.02
Sortino Ratio	2.73	2.91
Maximum Drawdown	-6.7%	-7.7%
Value-at-risk (95%, 1 week)	-2.5%	-2.9%

	vs. S&P 500
Information Ratio	-1.09
Alpha	0.5%
Beta	0.72
R-Squared	0.73

Robert Freedland's other strategies

Latest transactions view all

Average trades per month 10.0

Executed	Symbol	Security	Replicable	Type	Price
05/22/13	VIVO	MERIDIAN BIOSCIENCE INC		Buy	$22.33
05/22/13	LL	LUMBER LIQUIDATORS HOLDINGS		Sell	$89.89
05/17/13	CL	Colgate-Palmolive Co		Buy	$62.09
05/17/13	VIVO	MERIDIAN BIOSCIENCE INC		Sell	$21.59
05/16/13	F	FORD MOTOR CO		Buy	$14.76
05/14/13	MORN	MORNINGSTAR INC		Sell	$70.03
05/13/13	MORN	MORNINGSTAR INC		Buy	$69.85
05/13/13	F	FORD MOTOR CO		Sell	$13.94

Important Information

1. Past performance is no guarantee of future results.

2. Performance of the model 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 that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More

3. Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More

4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. 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 and do not include cash, dividends and earnings distributions, or transaction costs. More

7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

8. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Model 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. Model classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.

9. Top Replicable Holdings: These securities are currently held in the model manager's brokerage account. Those marked as "Replicable Holdings" currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.

10. Latest Transactions: These transactions were executed in the model manager's brokerage account. Those marked as "Replicable" () passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.

11. S&P 500 Index is an unmanaged index compiled by Standard & Poor´s Corp. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P/Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies Copyright © 2013.

Robert Freedland