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
Covestor Investment Management Webinar Video watch the video

Opportunistic Arbitrage

This long/short model aims to take advantage of opportunities presented by the market, and may use leverage.  It typically has a small/mid cap bias towards fundamentally strong stocks within attractive macro trands.  The model also focuses on underfollowed/underappreciated ideas to exploit the misinformation in the market.  Knowing the business and financials of a company are the keys to being able to make tough investment decisions.
Mark picks stocks based on detailed fundamental analysis, but only invests when the valuation is mismatched with high potential upside. He utilizes technical analysis for deriving ideal entry points to limit downside risk and adds leverage when the market provides exceptional valuations. Shorts are used to provide hedging to avoid selling longs that would otherwise cause large capital gains.
Mark focuses on macro trends and drills down to the best stocks and values within those trends. He typically invests in stocks trading below long term growth prospects and opportunistic situations where companies trade below intrinsic value. In order to know the business and financials of a company, he intensely studies quarterly reports, listens to conference calls, reads research reports, and reads up on competitors all while keeping an eye on economic trends.
The model will typically hold 15-20 positions to provide diversification from any one holding over 10%. The goal is to keep holdings down in order to focus on the top investment picks. When using leverage, the position count will at times exceed 20 positions.
Mark will sell a position when a stock meets initial targets, becomes larger then 10% of the portfolio, fundamentals change warranting a scaling back of the holding, or changes in the market present opportunities to lock in gains. The whole goal is to limit transactions and hence capital gains taxes. He also uses technical analysis to determine when the market might be signaling a change in a stocks prospects that the fundamentals might not yet reflect. Such reversals will be utilized to reduce exposure to risky selections.
None.

Risk rating

5
Leverage: 1.93
127.1%

Best 30 days

-58.8%

Worst 30 days

Performance

  • 28.3%
    30 day
  • -54.8%
    365 days
  • 197.4%
    Since Inception
    January 29, 2009
Monthly vs S&P500
Sparkbar Graph, Opportunistic Arbitrage Investment Model Performance versus S&P500
-61.1%

Last 12 months

  • $5,000.00 subscription min
  • Margin account required
  • 1.5% fee

Replicability

192.6%
0.3%
192.3%
-92.6%
99.7%
  • Leverage
  • Non-replicable
  • Holdings
  • Cash
  • Replicable

Top 5 Holdings View all

12.3%
11.6%
11.9%
11.6%
12.1%
  • RDWR
  • AER
  • RVBD
  • WFT
  • TEX

Model commentary

  1. Valuations now look extremely attractive

    24 January 2012

    Our top sectors for 2012 include Emerging Markets, Networking Equipment, Life Insurance and Oil Services.

  2. High buyback stocks could shine this year 18 January 2012
  3. Staying highly leveraged, as equities remain … 22 November 2011
  4. Lessons from the MF Global collapse 9 November 2011
  5. Disappointing last few months, but valuations are … 19 October 2011

show more


Performance detail

  • Manager
  • S&P 400 Midcap
  • S&P 500
30D 90D 365D SI

Performance

Inception January 29, 2009
as of February 08, 2012 Manager S&P 400 Midcap S&P 500 Average Subscriber
Past 30 days 28.3% 8.6% 5.4% 26.9%
Past 90 days 15.5% 11.6% 8.9% 13.2%
Past 365 days -54.8% 1.6% 1.9% -54.1%
Since Inception (Annualized) 43.3% 23.6% 16.7% -
2012 (YTD) 46.1% 10.7% 7.3% 42.4%
2011 -67.3% -3.1% -0.0% -66.2%
2010 55.9% 24.9% 12.8% -

Risk Metrics

Last 365 Days
as of February 08, 2012 Manager S&P 400 Midcap S&P 500
Best 30 days 65.9% 17.8% 13.6%
Worst 30 days -55.4% -22.9% -16.7%
Volatility 79.5% 28.5% 23.2%
Sharpe Ratio -0.69 0.05 0.08
Sortino Ratio -0.92 0.07 0.10
Maximum Drawdown -76.7% -26.6% -19.4%
Value-at-risk (95%, 1 week) -18.4% -6.6% -5.4%
vs. S&P 400 Midcap vs. S&P 500
Information Ratio -1.06 -0.97
Alpha -62.1% -61.9%
Beta 2.65 3.22
R-Squared 0.91 0.88

Latest transactions view all

Average trades per month 6.2
Executed Symbol Security Replicable Type Price
02/08/12 OCZ OCZ TECHNOLOGY GROUP INC Yes Buy $9.10
02/03/12 NIHD NII Holdings Inc Yes Buy $22.79
01/30/12 GFA Gafisa SA Yes Buy $5.14
01/18/12 OCZ OCZ TECHNOLOGY GROUP INC Yes Buy $7.77
01/13/12 MWW MONSTER WORLDWIDE INC Yes Buy $8.16
01/11/12 FWLT FOSTER WHEELER AG Yes Buy $20.00
01/11/12 SVNT Savient Pharmaceuticals Inc Yes Buy $2.46
01/05/12 LNC Lincoln National Corp Yes Buy $19.59
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  • $5,000.00 subscription min
  • Margin account required
  • 1.5% 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

12. This model was launched on Covestor on February 03, 2010. Trading history prior to launch was audited by Covestor and is consistent with current model strategy. Manager performance incorporates this historical data.

Background provided by the manager Stone Fox Capital Form ADV II


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