The portfolio utilizes quantitative analysis of fundamental data for exchange-listed securities with the goal to create a portfolio that will have better long-term returns than the S&P 500 at a similar risk level.
The portfolio consists of stocks within all of the following asset classes; Large Cap, Mid Cap, Small Cap, and Foreign / International (through ADRs). The stocks are initially equal-weighted and are restricted to long positions. If the risk level of the portfolio is greater than the S&P 500 on a 3-year basis, or a portfolio is desired with a lower risk level, the allocation to the risky portfolio is reduced by investing in a risk-free asset, e.g. 30-day U.S. Treasury Bills (through ETFs). This reduces the overall portfolio risk to the target objective.
The portfoliol looks for stocks with over 20 stock screens utilizing mainly fundamental data. It looks for companies with Growth At a Reasonable Price (GARP) and includes data related to stock risk level in addition to long-term return data. The attractive characteristics the portfolio looks for is significant earnings per share (EPS) and sales growth, increasing operating margin and income, above average return on equity and assets, a reasonable price-earnings ratio and a PEG ratio below or equal to 1.5. It also looks for increasing year-over-year cash flow from operations.
Stocks passing the screening process are initially equal-weighted. The portfolio typically includes 20 to 40 holdings. Position turnover is typically 15%, resulting in a holding period of a little over 6 years and between 3 and 6 new investment ideas each year. The portfolio is rebalanced monthly to stay within a fixed percentage of each month’s target weights for each asset class.
The portfolio will sell for one of three reasons: if a security reaches its intrinsic value and the price-earnings ratio to earnings growth shows the stock is overvalued, or if the fundamental analysis signals a sell signal.
Past performance is no guarantee of future results.
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".
Average client returns are calculated by Covestor and are composed of the average, time-weighted 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.
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.
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.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
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.
Transactions that are 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 investment trade activity may vary.
Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index.