Sparrow Capital Management Profile Picture Investment Adviser

Sparrow Capital

CIO and Senior Portfolio Manager,Financial Services,Sparrow Capital Management

  • Education Washington University
  • Qualifications MBA
  • Investment Experience 20 years
  • Founded 1988

Fundamental Growth

Studies quarterly and annual reports, looking for companies that have demonstrated the ability to grow sales, earnings, cash flows and book values consistently over multiple economic cycles.
Companies that have demonstrated the ability to grow sales, earnings, cash flows and book values on a consistent basis over multiple economic cycles. Then value these businesses using a discounted cash flow model and buy these companies when the market price provides a sufficient upside potential. This model is long-only and invests in companies of all capitalizations.
Research screens use databases such as Value Line, Zacks, and Reuters for industries and companies that show consistent earnings power over multiple economic cycles.

Stocks are then scored using a proprietary matrix of various fundamental, quantitative, and technical factors. Some of these factors include: above average earnings per share growth rates, above average return on equity, excess free cash flow. low debt to equity, shareholder friendly management, and high margin of safety.

Finally, reviews the company's original source material such as quarterly and annual reports; participates in quarterly conference calls and web casts; reads independent analyst reports from Value line, Zacks and Reuters; determines intrinsic value and best time to buy based on trading patterns.
Diversify allocations across similar but different sectors as compared to the S&P 500.
Sells when the original reason for the purchase no longer exists or when extreme overvaluations occur on a case by case basis.
None.

Risk score

3
15.4%

Best 30 days

-16.8%

Worst 30 days

Performance

  • -1.7%
    30 day
  • 4.9%
    90 day
  • 18.1%
    365 day
Monthly vs S&P500
sparrow capital - fundamental growth
-5.5% 12 months
Subscribe
  • $10,000 subscription min
  • 1.5% fee

Replicability

100.0%
  • Replicable

Top 5 Holdings View all

7.5%
6.6%
6.5%
6.3%
6.3%

Model commentary

  1. Equity returns trump bond yields in this market

    5 April 2013

    Stocks offer better potential than bonds.

  2. Stock prices are still reasonable despite record-smashing Dow 12 March 2013
  3. The dividend yield case for tobacco giant Altria Group 4 February 2013
  4. Valuations favor stocks over bonds 28 January 2013
  5. Who wins election doesn't matter. Economic clarity does 18 October 2012

show more


Performance detail

  • Manager
  • S&P 500
30D 90D 365D SI

Performance

Inception April 14, 2010
as of June 17, 2013 Manager S&P 500 Average Subscriber
Past 30 days -1.7% -1.7% -1.8%
Past 90 days 4.9% 5.9% 4.2%
Past 365 days 18.1% 22.1% 15.4%
Since Inception (Annualized) 11.2% 10.0% -
2013 (YTD) 14.8% 14.9% 13.3%
2012 10.7% 13.4% 8.2%
2011 7.3% -0.0% -

Risk Metrics

Last 365 days
as of June 17, 2013 Manager S&P 500
Best 30 days 7.7% 8.2%
Worst 30 days -6.3% -7.0%
Volatility 12.0% 12.4%
Sharpe Ratio 1.49 1.77
Sortino Ratio 2.20 2.65
Maximum Drawdown -9.1% -7.7%
Value-at-risk (95%, 1 week) -2.8% -2.9%
vs. S&P 500
Information Ratio -0.68
Alpha -0.4%
Beta 0.86
R-Squared 0.78
Sparrow Capital Management's other strategies
Subscribe
  • $10,000 subscription min
  • 1.5% fee

Latest transactions view all

Average trades per month 1.8
Executed Symbol Security Replicable Type Price
07/02/12 PEP PepsiCo Inc/NC Yes Buy $70.70
06/27/12 KRO KRONOS WORLDWIDE INC Yes Sell $15.93
04/19/12 FAST FASTENAL CO Yes Buy $47.83
02/27/12 MKTAY MAKITA CORP-SPONS ADR Yes Sell $40.80
11/02/11 OXY Occidental Petroleum Corp Yes Buy $93.17
10/26/11 NFLX NETFLIX INC Yes Sell $76.10
10/24/11 HS HEALTHSPRING INC Yes Sell $53.67
08/25/11 HANS HANSEN NATURAL CORP Yes Buy $84.58


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.


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