Sparrow Capital Management

Freedland Healthcare



  • Additional attributes Large cap, Sector
  • Strategy Stocks
The Freedland Healthcare portfolio invests in healthcare-related stocks. It attemps to identify companies with reasonable valuations and good prospects for growth including ones that offer possible dividends to stockholders. These companies will range from drug, device, retail sales, electronic medical record, prescription services, and HMO/hospital companies. While emphasizing mid cap stocks, large cap and smaller capitalization companies may be included as well as emerging medical treatments/technologies.

Companies selected for this portfolio are closely monitored. Stocks are typically acquired slowly. Freedland attempts to limit losses by selling losing positions quickly. In the same way, he will attempt to preserve capital by moving towards a cash position during weak market environments and towards equities during periods of market strength. The market environment will be assessed by observing the price behavior of the individual holdings within the portfolio itself.
Using publicly available sources including Yahoo Finance, Morningstar.com, and Google Finance, this portfolio will try to identify companies with longer-term records of growing revenue, earnings, and free cash flow. Consideration will be given to companies demonstrating improving fundamentals as well as reasonable valuation in terms of commonly available ratios including price/earnings, PEG, and price/sales ratios. Dividend payments will also be considered in a favorable light for investment decisions.
A maximum of twenty holdings. These holdings will be of equal weight and represent 50% of the cash available for investing. Subsequent purchases on buy signals. An attempt will be made to provide a diverse group of holdings across the healthcare field. Portions of appreciating stocks will be sold and these sales will be used as "buy signals” until 20 positions reached. This portfolio will hold at least a minimum of 5 positions.
Positions are closed out only if they decline to preset levels as determined after an initial purchase or after gains in which case sale points are increased to trail the appreciation targets by pre-determined amounts. With each closure of a position on a sale after a decline, this is viewed as a negative signal resulting in a shift to cash unless at minimum portfolio size of 5 positions in which case holding is replaced.

Performance

4.8%

Month to date

MTD

10.1%

Quarter to date

QTD

10.1%

Year to date

YTD

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 15.5%

    Best quarter

  • -13.3%

    Worst quarter

    • 1% fee
    • $20,000 min
  • Required: Margin account

Performance detail

Performance Portfolio inception October 06, 2010

as of February 17, 2017 Manager (net of fees ) S&P 500 Health Care ETF S&P 500
Month-to-date 4.8% 4.5% 3.2%
Quarter-to-date 10.1% 6.8% 5.0%
Last 365 Days 27.0% 11.6% 22.6%
Since inception (Annualized) 14.2% 14.8% 11.7%
2017 (YTD) 10.1% 6.8% 5.0%
2016 3.1% -4.3% 9.5%
2015 -3.9% 5.3% -0.7%
2014 23.4% 23.3% 11.4%
2013 49.8% 39.0% 29.6%
2012 18.8% 15.0% 13.4%
2011 -7.8% 10.1% -0.0%

Risk metrics Last 365 days

as of February 17, 2017 Manager (net of fees ) S&P 500 Health Care ETF S&P 500
Volatility 13.3% 13.4% 10.6%
Sharpe Ratio 1.98 0.82 2.08
Sortino Ratio 2.66 1.30 2.79
Maximum Drawdown -8.3% -12.8% -5.6%
Value-at-risk (95%, 1 week) -3.1% -3.1% -2.5%
S&P 500 Health Care ETF vs. S&P 500
Information Ratio 1.74 0.48
Alpha 15.5% 5.4%
Beta 0.78 0.92
R-Squared 0.61 0.54

Exposure

95.2%
  • Consumer, Non-cyclical

Top 5 securities

11.1%
8.2%
6.7%
6.0%
5.8%
View all

Portfolio commentary

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Latest transactions Average trades per month 8.4

Executed Symbol Security Type Price
February 09, 2017 CUTR Cutera Inc Buy $19.25
February 09, 2017 XRAY DENTSPLY SIRONA Inc Sell $58.20
January 26, 2017 LMAT LeMaitre Vascular Inc Buy $23.23
January 12, 2017 WOOF VCA Inc Sell $90.97
January 06, 2017 UTHR United Therapeutics Corp Buy $146.78
January 06, 2017 CVS CVS Health Corp Sell $81.43
December 08, 2016 WOOF VCA Inc Buy $63.86
December 08, 2016 MDT Medtronic PLC Sell $71.87
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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 reflects the deduction of 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 retroactively to present the portfolio return "net-of-fees".
  3. Average client returns are calculated by Covestor and are composed of the asset-weighted daily 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. 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 displayed have been calculated by Covestor using daily benchmark prices and do not include dividend income. More information here. For certain portfolios Covestor uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  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 of Portfolio Managers 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 accounts 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. 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.
  11. 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.