Sizemore Capital Profile Picture Investment Adviser

Sizemore Capital

Sizemore Capital

  • EducationTexas Christian University; London School of Economics
  • QualificationsBA Phi Beta Kappa; Master's in Finance and Accounting
  • Investment Experience10 years
  • Founded2008

Dividend Growth

  • Strategy Etfs / funds
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 typically 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.

Performance

1.2%

Month to date

MTD

5.4%

Quarter to date

QTD

24.8%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 19.4%

    Best quarter

  • -8.8%

    Worst quarter

  • $20,000 investment min
  • 1.5% fee
  • Required: Margin account

Performance detail

  • Manager (net of fees )

Performance Portfolio inception March 29, 2012

as of August 25, 2016 Manager (net of fees ) S&P 500
Month-to-date 1.2% -0.1%
Quarter-to-date 5.4% 3.5%
Last 365 Days 19.7% 12.0%
Since inception (Annualized) 11.7% 10.4%
2016 (YTD) 24.8% 6.3%
2015 -11.3% -0.7%
2014 14.1% 11.4%
2013 23.2% 29.6%

Risk metrics Last 365 days

as of August 25, 2016 Manager (net of fees ) S&P 500
Volatility 20.8% 15.5%
Sharpe Ratio 0.93 0.75
Sortino Ratio 1.38 1.05
Maximum Drawdown -22.2% -13.3%
Value-at-risk (95%, 1 week) -4.8% -3.6%
vs. S&P 500
Information Ratio 0.60
Alpha 7.1%
Beta 1.04
R-Squared 0.61

Exposure

20.7%
16.4%
15.8%
8.7%
7.1%
  • REIT
  • MLP
  • Energy
  • Financial
  • Consumer, Cyclical

Top 5 securities

9.2%
5.7%
5.1%
5.0%
4.8%
View all

Portfolio commentary

  1. sizemore-capital/_profile-35x35.jpg Scaling Apple’s cash mountain

    23 August 2016

    Apple's $231 billion cash hoard is a huge competitive edge

  2. sizemore-capital/_profile-35x35.jpg Sun sets on 60/40 portfolio 16 August 2016
  3. sizemore-capital/_profile-35x35.jpg Black swans explained 19 July 2016
  4. sizemore-capital/_profile-35x35.jpg Go long on the Pound 6 July 2016
  5. sizemore-capital/_profile-35x35.jpg In praise of dividends 15 June 2016
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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, 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. 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.
  11. This portfolio uses short selling. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  12. This portfolio uses borrowed funds or leverage to fund investments. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.