March 11, 2010 11:05 PM ET
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Andy Schornack
Strategy Financial Services Specific
Category Sector Focus
Average trade replication time 2 minutes
2,683 Views
6 Subscribers
Fees 1.50% of invested assets p.a. Subscription Min $5,000.00*
Focusing on the financial service and real estate sectors, he employs a bottom-up approach, conducting detailed financial statement analysis and valuation techniques. He invests in companies with stable dividends which are trading at a discount to fair market value.
He analyzes opportunities in the financial services sector, including REITs, focusing on institutions with favorable balance sheets and cash flow statements in order to support a stable dividend and capital appreciation. Also contributing to the stable dividend is a blend of common and preferred equities which are trading at a discount to fair market value.
Utilizing a bottom-up approach, he screens securities through research including newspapers, investment blogs and online forums. Once screened, he conducts in-depth analysis of the 10-K, 10-Q, letters to shareholders and conference calls. Particular emphasis is placed on management philosophy.
His portfolio will range from 5 to 15 positions. Initially, each position will be 5-10% of the portfolio with the best opportunities as high as 25% of the portfolio. He looks to buy positions at a minimum of 15% discount to intrinsic value based on his internal estimates.
He aims to sell positions as they reach his targeted intrinsic value. Targeted returns are 10-15% per annum. He will consider averaging down in an investment in which he feels confident in his analysis and will liquidate positions where material changes have affected the underlying value of the security.
He occasionally will invest in special situation opportunities that provide the appropriate risk/reward characteristics.
Investment Report
Portfolio held well through January with the overall market trending down, the portfolio held its own. The big winner for the month was SNV which experienced a very nice upside swing through earnings season. Its 4Q 2009 earnings are out on January 28 after market close. The balance of the portfolio had little activity and the overall strategy has not changed in the portfolio.
In January, I did not...
February 2010
Personal Background
- Vice President and Commercial Lender at First Commercial Bank
- B.S.B. in Finance from University of Minnesota's Carlson School of Management and an MBA from the University of St. Thomas' Opus College of Business
- Owns a real estate investment business
- 7+ years experience in the stock market
Experience on Covestor.com‡
Andy Schornack's Covestor.com Profile
- Overperformed S&P 500 for 21 of their 33 months on Covestor.com#
- Return Since Inception: 60.16% (June 2007)
- Last 3 Months Return: 11.22% (S&P 500 0.81%)
- Annualized Return: 18.58%
- Sharpe Ratio: 0.47 (S&P 500 -0.09)
- Maximum Drawdown: -48.71% (S&P 500 -56.78%)
Performance
| Inception August 31, 2009 | Model Manager | S&P 500 |
|---|---|---|
| Return Since Inception (%) | 26.33 | 12.25 |
| Annualized Return (%) | 56.31 | 24.70 |
| Month to Date Return (%) | 4.62 | 3.72 |
| Calendar 3 Month Return (%) | 15.17 | (0.39) |
| Sharpe Ratio | 3.36 | 1.52 |
Monthly Performance (%)
| Month | Return | S&P500 | Outperformance | Risk | Performance |
|---|---|---|---|---|---|
| Feb | 1.80 | 2.85 | (1.05) |
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| Jan | 1.79 | (3.70) | 5.49 |
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| Dec | 12.28 | 1.78 | 10.51 |
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| Nov | 5.94 | 5.74 | 0.21 |
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| Oct | (3.34) | (1.98) | (1.37) |
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| Sep | 1.36 | 3.57 | (2.22) |
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The performance of the model manager's account has been calculated by CVIM on a daily time-weighted basis including cash and broker commissions. These returns do not reflect any CVIM suitability or risk score restrictions and are exclusive of CVIM fees. Therefore, they do not represent the performance of the CVIM model available for subscription. Benchmark returns have been calculated by CVIM using a time-weighted calculation of daily valuations and do not include cash or transaction costs. Please see the additional disclosures below.
Top Holdings
| Symbol | Security | Exchange | Allocation (%) |
|---|---|---|---|
| LXP | LEXINGTON REALTY TRUST COM | NYSE | 30.26 |
| NYB | NEW YORK COMMUNITY BANCORP COM | NYSE | 19.44 |
| Cash | n/a | n/a | 11.97 |
| HRP PRD | HRPT PROPERTIES TRUST 6.50% PFD -D | NYSE | 8.78 |
| SNV | SYNOVUS FINL CORP CM | NYSE | 6.90 |
Total Holdings 10
Data displayed is as of market close: March 10, 2010
Recent Transactions
| Symbol | Security | Type | Price |
|---|---|---|---|
| LAB | LABRANCHE & COMPANY COM | Buy | $4.46 |
| PSEC | PROSPECT CAPITAL CORPORATION COM | Sell | $10.96 |
| PSEC | PROSPECT CAPITAL CORPORATION COM | Buy | $10.49 |
| AGNC | AMERICAN CAPITAL AGENCY CORP COM | Buy | $26.33 |
| ANH | ANWORTH MORTGAGE ASSET COM | Buy | $7.03 |
Data displayed is as of market close: March 10, 2010
* The Subscription Minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by CVIM, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.
‡ Covestor.com performance data has been calculated by Covestor on a daily time-weighted basis of the equity positions of the account and is exclusive of any commissions and cash in the portfolio. The member's performance on Covestor.com, based on a separate account, may not reflect the strategy employed to manage the model available for subscription on CVIM. Please see additional disclosures below.
# Since the model manager's inception in Covestor.com
It should not be assumed that any information discussed herein will prove to be profitable or that decisions in the future will be profitable or provide similar results. The information set forth herein is not a substitution for personalized investment advice, and should not be construed as a recommendation to purchase or sell a particular security or to subscribe to a particular model.
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