Investment Adviser

Sizemore Capital

Sizemore Capital

Education Texas Christian University; London School of Economics
Qualifications BA Phi Beta Kappa; Master's in Finance and Accounting
Investment Experience 10 years
Founded 2008

Dividend Growth

Exceptions
Sell Discipline
Allocation Discipline
Research
Approach
Summary

The Dividend Growth portfolio selects dividend-paying stocks that I believe will provide an attractive income over the next decade and beyond.

I believe a fundamental shift in investor preferences is occurring that favors income over growth. This is due, in part, to the aging of America’s Baby Boomers. At the same time, I see traditional income investments such as bonds and certificates of deposit currently offering unattractive yields that are quite low.

The Dividend Growth portfolio invests in shares of U.S. and international common stocks, real estate investment trusts (REITs), master limited partnerships (MLPs), and other income-producing securities. The primary objective of the portfolio is to potentially generate a high and growing income stream that will outpace inflation over time. The secondary objective is to generate long-term capital gains.

I select investments that meet one or both of the following criteria:

1. They offer a high current yield relative to competing investments.

2. They provide income from the investment that has a long history of rising over time, or I believe that it has potential to rise going forward.

My research attempts to gauge the safety of the income stream. I seek to avoid positions where the risks outweigh the potential for high yields.

The Dividend Growth portfolio is concentrated among asset classes that have a history of rising income payouts. Those include dividend-paying stocks, real estate investment trusts, and master limited partnerships. Other asset classes and investment vehicles (such as closed-end mutual funds or ETFs) may also be considered as valuations and market conditions warrant. My initial investment in a security will not exceed 5% of the total portfolio's value, though the allocation may rise above that threshold due to price movements over time.

I will sell holdings that no longer meet the strategy's criteria for dividend growth. Positions that I view as at risk of dividend reductions will be considered for sale. Additionally, positions that I view as overvalued or that no longer offer an attractive yield relative to alternatives will also be considered for sale.

I may buy a security that does not have a history of dividend payouts if my research leads me to believe that a payout will be initiated in the near future.

Replicability

100.0%

Replicable

Top 5 Holdings View all

5.6%

5.2%

5.1%

5.0%

4.9%

Cash
PAA
EPD
SIR
CSCO

Model commentary

Sizemore: How I'm playing the end of a 30-year bull for bonds

18 June 2013

“The old tech stocks are the sweet spot right now,"
Income investors shouldn't panic as rates rise 12 June 2013
After the bloodletting: Are REITs and MLPs still a buy? 11 June 2013
Covestor Profiles: Charles Sizemore 2 June 2013
And the Masters of the Universe say... 19 May 2013

Performance detail

Manager
S&P 500

30D 90D 365D SI

Performance

Inception March 29, 2012

as of June 18, 2013	Manager	S&P 500	Average Subscriber
Past 30 days	-3.0%	-0.9%	-3.1%
Past 90 days	5.5%	6.0%	4.3%
Past 365 days	30.0%	22.8%	-
Since Inception (Annualized)	23.5%	14.3%	-
2013 (YTD)	22.9%	15.8%	-

Risk Metrics

Last 365 days

as of June 18, 2013	Manager	S&P 500
Best 30 days	10.4%	8.2%
Worst 30 days	-6.0%	-7.0%
Volatility	10.3%	12.4%
Sharpe Ratio	2.88	1.83
Sortino Ratio	4.71	2.74
Maximum Drawdown	-6.3%	-7.7%
Value-at-risk (95%, 1 week)	-2.4%	-2.9%

	vs. S&P 500
Information Ratio	1.07
Alpha	11.9%
Beta	0.70
R-Squared	0.71

Sizemore Capital's other strategies

$10,000 subscription min
Margin account required
1% fee

Latest transactions view all

Average trades per month 4.9

Executed	Symbol	Security	Replicable	Type	Price
06/17/13	SBY	Silver Bay Realty Trust Corp		Sell	$16.63
05/14/13	SAN	Banco Santander SA		Buy	$6.97
05/14/13	STO	STATOIL ASA-SPON ADR		Buy	$23.82
05/07/13	NSRGY	Nestle SA		Buy	$70.30
05/07/13	JNJ	Johnson & Johnson		Sell	$85.43
05/07/13	CSCO	Cisco Systems Inc		Buy	$20.45
04/24/13	SBY	Silver Bay Realty Trust Corp		Buy	$19.46
04/24/13	BX	BLACKSTONE GROUP LP/THE		Sell	$20.50

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.

Sizemore Capital