March 11, 2010 11:43 AM ET
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Yale Bock
Strategy Growth in Special Situations
Category Special Situations
Average trade replication time 2 minutes
493 Views
0 Subscribers
Fees 1.50% of invested assets p.a. Subscription Min $5,000.00*
Yale is a growth investor focusing on fundamental analysis including cash ratios, liquidity ratios and margin analysis. Also will invest in anticipation of mergers, spinoffs and arbitrage opportunities. He runs YH&C Investments (RIA) and has over 20 years of investment experience.
Growth at a reasonable price. Cash rich balance sheets. Businesses with strategic competitive advantages and high barriers to entry with enormous target markets. Proven leadership in management with skin in the game and forward looking thinkers. Spinoffs, arbitrage possibilities, but largely growth oriented businesses.
The screening approach investigates different criteria on the Balance Sheet – cash ratios, cash/debt ratios, current assets/current liabilities, liquidity ratios and cash flow ratios. In addition, margin analysis is used (ie. Gross margin, net margin, operating margin, return on assets). Sources include Barron’s, Yahoo Finance, MSN Screener, local news, Seeking Alpha, Investopedia, BusinessWeek... [more +]
Positions range from 5% to 20% per allocation. If one position reaches an abnormally large percentage of assets, it will usually be trimmed in some fashion (ie. Hedging or selling).
Closing positions is based on the performance, or lack thereof, of the company. If an abnormally large gain is achieved in a short period, may be sold. If stock is grossly overvalued, it will also be sold.
If stocks are highly overvalued, merger activity, regulatory issues arise, arbitrage possibilities arise or world events occur, the strategy may change.
Investment Report
As a bottom up stock picker, I typically monitor the macroeconomic outlook and try and use whatever pessimism exists to my benefit, obviously in form of lower stock prices of companies where I wish to acquire their common stock. I believe March of 2010 will be very similar to January and February, in that market sentiment is neutral to a bit negative, based on the idea that economic recovery will...
March 2010
Personal Background
Yale runs YH&C Investments (RIA). He also manages the secured lending operations of a family owned business. He became a CFA in 2007.
Investment experience of over 20 years and an MBA from UC Irvine
Experience on Covestor.com‡
Yale Bock's Covestor.com Profile
- Overperformed S&P 500 for 12 of their 14 months on Covestor.com#
- Return Since Inception: 98.41% (January 2009)
- Last 3 Months Return: 10.45% (S&P 500 0.81%)
- Annualized Return: 85.71%
- Sharpe Ratio: 3.28 (S&P 500 -0.09)
- Maximum Drawdown: -16.66% (S&P 500 -56.78%)
Performance
| Inception January 19, 2010 | Model Manager | S&P 500 |
|---|---|---|
| Return Since Inception (%) | 2.46 | (0.40) |
| Month to Date Return (%) | 5.93 | 3.72 |
| Sharpe Ratio | 0.80 | (0.18) |
Monthly Performance (%)
| Month | Return | S&P500 | Outperformance | Risk | Performance |
|---|---|---|---|---|---|
| Feb | 0.41 | 2.85 | (2.44) |
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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 (%) |
|---|---|---|---|
| GIGM | GIGAMEDIA LTD | NASDAQ | 38.16 |
| DGI | DIGITALGLOBE INC | NYSE | 27.57 |
| NDAQ | NASDAQ OMX GROUP/THE | NASDAQ | 23.32 |
| CASS | CASS INFORMATION SYSTEMS INC | NASDAQ | 10.89 |
| Cash | n/a | n/a | 0.06 |
Total Holdings 5
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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