Stone Fox Capital Profile Picture Investment Advisor

Stone Fox Capital

Financial Services,Stone Fox Capital

  • Education University of Tulsa
  • Qualifications CPA
  • Investment Experience 15 years
Opportunity is Knocking: Mark Holder
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Net Payout Yields

Conservative model focused on a diversified selection of financially strong large cap stocks. These stocks have high Net Payout Yields which is the combination of dividends and stock repurchases.  Target dividend yield is 2-3% while net payout yield target is 8%. Selection of these stocks takes the emotion out of stock picking. The portfolio will be concentrated in 15-20 stocks to remain focused on the highest net payout yielding stocks.
Mainly invests in the highest yielding stocks in the SP500 with market caps above $10B. Stocks with high forward dividend yields combined with recent buybacks historically outperform the market. The model also invests 10-20% in faster growing large caps to increase the return potential while maintaining a Beta of 1.
Screen companies for high Net Payout Yields. The higher the yield the better but this model will not automatically select the highest yielders like the Dogs of the Dow approach. Sometimes high yields signify a distressed company that is at risk of Bankruptcy and hence avoided or invested using only half a position to reduce risk.
Model typically holds around 15-20 positions. Some stocks will only be allocated a half position if they are deemed overly risky, but offering a potential high return. Stocks are rebalanced as their yields decline making them less attractive and replaced by higher yielding stocks.
Positions are closed as stock yields drop either via price increases that drive down yields or a company cutting a dividend or a stock repurchase plan. Typically stock repurchase plans are the most flexible and any cuts here are very telling that management believes the financial picture has changed compared to the market price of the company.
A few ETFs might be held to provide for better diversification and risk reduction such as in the biotech sector.

Risk rating

3
11.0%

Best 30 days

-15.7%

Worst 30 days

Performance

  • 3.8%
    30 day
  • 8.5%
    365 days
  • 18.9%
    Since Inception
    November 02, 2010
Monthly vs S&P500
Sparkbar Graph, Net Payout Yields Investment Model Performance versus S&P500
6.1%

Last 12 months

  • $5,000.00 subscription min
  • 1.1% fee

Replicability

0.0%
93.4%
6.6%
100.0%
  • Non-replicable
  • Holdings
  • Cash
  • Replicable

Top 5 Holdings View all

5.1%
4.7%
5.2%
5.1%
4.4%
  • HD
  • GS
  • LO
  • LOW
  • TRV

Model commentary

  1. Buying cheap stocks on this market rally

    19 February 2012

    The year got off to a solid start, with more gains expected.

  2. Valuations now look extremely attractive 24 January 2012
  3. High buyback stocks could shine this year 18 January 2012
  4. Staying highly leveraged, as equities remain … 22 November 2011
  5. Lessons from the MF Global collapse 9 November 2011

show more


Performance detail

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

Performance

Inception November 02, 2010
as of February 21, 2012 Manager S&P 500 Average Subscriber
Past 30 days 3.8% 3.6% -
Past 90 days 15.9% 17.3% -
Past 365 days 8.5% 1.4% -
Since Inception (Annualized) 14.2% 10.7% -
2012 (YTD) 8.5% 8.3% -
2011 6.8% -0.0% -

Risk Metrics

Last 365 Days
as of February 21, 2012 Manager S&P 500
Best 30 days 11.0% 13.6%
Worst 30 days -15.7% -16.7%
Volatility 20.8% 23.3%
Sharpe Ratio 0.40 0.05
Sortino Ratio 0.50 0.07
Maximum Drawdown -16.6% -19.4%
Value-at-risk (95%, 1 week) -4.8% -5.4%
vs. S&P 500
Information Ratio 1.30
Alpha 6.8%
Beta 0.87
R-Squared 0.95

Latest transactions view all

Average trades per month 2.8
Executed Symbol Security Replicable Type Price
02/03/12 COP ConocoPhillips Yes Buy $70.34
02/03/12 GILD Gilead Sciences Inc Yes Sell $53.12
01/05/12 GS Goldman Sachs Group Inc/The Yes Buy $92.85
01/03/12 BMY Bristol-Myers Squibb Co Yes Sell $34.97
12/29/11 COF CAPITAL ONE FINANCIAL CORP Yes Sell $42.61
11/01/11 LOW Lowe's Cos Inc Yes Buy $20.76
10/21/11 MSFT Microsoft Corp Yes Sell $27.08
10/19/11 DTV DIRECTV Yes Buy $46.23
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  • $5,000.00 subscription min
  • 1.1% fee

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. 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

6. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

7. 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.

8. 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.

9. 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.

10. 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 500 Copyright © 2012.

11. Dow Jones index data: CME Group Index Services, LLC 2012

Background provided by the manager Stone Fox Capital Form ADV II


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