Small Cap Value
Twinleaf’s Small Cap Value strategy seeks to identify undervalued stocks that I believe have the potential to double in value in two years. I focus on buying only inexpensive stocks that my research suggests have the potential to be acquired at a premium to the stock’s current market value. I typically invest in stocks that have a $3 billion market cap or less - a market segment that I believe is often under-researched by other investors.
I leverage my experience in the tech, media and telecom industries in an effort to potentially gather an informational edge over other investors. Just as important, I try to avoid companies that do not have growth potential, have uncertain capex spending trends, poor governance and/or a management team whose interests are not aligned with shareholders.
I closely monitor about 150 potential stocks and develop valuation models for each of them. I then perform due diligence and investment research in an attempt to find best investment candidates. Then I typically speak to or meet with the management team running the companies in which I invest, often at conferences or trade shows, to help validate my theses.
I run a concentrated portfolio and usually hold between 8 to 12 stocks, mostly in the tech, media and telecom sectors. My investments usually have market values of less than $2 billion, and do not usually exceed $3 billion.
I typically sell stocks when they have reached my price targets or when a company has agreed to be acquired. I also may sell when my investment thesis for a particular stock has changed due to competitive, operational or management issues. Stocks also may be sold if my research suggests that they no longer have at least 50% upside potential over the next 18 months.
I may defer the sale of a stock in order to achieve long-term capital gains tax treatment for the investment.
Value, Concentrated Stock
Inception June 12, 2013
|as of March 06, 2014
||Manager (net of fees)
|Past 30 days
|Past 90 days
|as of March 06, 2014
||Manager (net of fees)
|Best 30 days
|Worst 30 days
|Value-at-risk (95%, 1 week)
||vs. Russell 2000
||vs. S&P 500
Average trades per month 1.4
Past performance is no guarantee of future results.
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 that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More
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 portfolio. 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
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Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
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These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" 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.
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 © 2014.