Cratus Capital LLC

Fixed Income

Cratus Capital LLC
Low volatilityFixed Income ETFs

The Cratus Capital Fixed Income Portfolio is designed to provide high yield and income while minimizing volatility and risk. This strategy invests exclusively in short-term fixed-income bond ETFs, which include all sectors of the fixed-income market. This strategy is actively managed, traded and monitored daily. Overall risk is minimized through extensive due diligence on all ETFs which Cratus Capital includes in this strategy. Interest-rate risk is minimized by investing in bond ETFs with relatively low durations.

Portfolio risk score
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Strategy

ETFs / Funds

Management fee

0.50%

Min investment

$100

Performance Chart

Metrics

Last 30 days 0.5%
Last 90 days 1.0%
Last 365 days 5.0%
Last 5 years 15.3%
Since inception (Aug 24, 2016) 22.5%
Since inception (annualized) 2.7%
2024 (YTD) 0.9%
2023 4.5%
2022 -6.6%
2021 3.3%
2020 8.2%
2019 10.3%
2018 -3.3%
2017 3.2%
Volatility
The standard deviation of portfolio returns; a measure of risk.
1.7%
Sharpe ratio
A measure of risk-adjusted portfolio return.
-0.32
Sortino ratio
A measure of portfolio return adjusted for down-side volatility.
-0.32
Maximum drawdown
Maximum value lost from peak to trough over the last year.
-0.4%
Value-at-risk (95%, 1 week)
Estimates the potential loss of a portfolio with a specified confidence level and time horizon.
-0.4%
Investment (below min)
Annual costs

Portfolio information

Research

One of our distinguishing features at Cratus Capital LLC is our in-depth, independent research on every ETF held in the portfolio we manage. We seek ETFs which have superior investment strategies, low fees and strong management teams. We conduct extensive due diligence on the Companies that manage the ETFs we include in the portfolio. The research process begins with a lengthy report on each ETF and each investment Company that manages the ETFs. The next step is to communicate with the Company and the management team for the ETF and obtain all financial statements, sector and individual holding breakdown as well as interviews with senior management. This is done through conference calls and onsite visits. Macroeconomic analysis and fixed income market analysis are done on a daily basis. We continue to communicate frequently with the managers of the ETFs as well as economic and fixed income market strategists. Summary reports and recommendations are done on all bond ETFs.

Approach

The focus on short-term high-yielding bonds allows us to screen for the ‘best in class’ short-term high-yielding fixed income ETFs. We carefully analyze the composition of these ETFs and create a portfolio of short-term high-yielding ETFs from various sectors of the fixed income market. Optimal portfolio construction minimizes correlation between the ETFs in the portfolio and maximizes return potential and capital preservation. The portfolio is well diversified by sector and industry. Our objective is to find ETFs that are undervalued but have solid risk/return metrics and have upside potential. Our value proposition is also based on the reinvestment of high income which compounds rapidly in all economic and financial market environments providing a strong cushion in the portfolio. This is a focused strategy where the portfolio will hold up to 20 positions. We are investing in ETFs in which we have a very strong conviction and the ETFs with the lowest costs. One other highlight is our focus on liquidity. We are only buying fixed-income ETFs that can be bought and sold daily. While we have a long-term time horizon, trading is done as necessary to continuously hold positions that have solid upside potential and a high stream of current income.

Sell discipline

Since we are conducting ongoing due diligence for every position that is held in the Cratus Capital Fixed Income Portfolio, if there is news that draws concern about the Company managing the ETF or the ETF strategy, we will do additional research. If we determine that there are concerns about the sector or the positions in the ETF or economic factors that will negatively influence the ETF, we will either trim our holding in that ETF or sell the ETF. We will also sell or lighten a position when the values of the ETFs have risen beyond fair market value and are no longer a good investment. If fees increase, we will reexamine the ETFs and research alternatives with lower fees. A sudden management change at the Company that runs the ETF is an example of a red flag. Positions are sold when there are new and better ideas with more value and more upside than the current positions. Rebalancing occurs at least monthly to make certain that the fixed-income ETFs remain within their target allocations. And the target allocations will change based on rotation from sectors of the fixed-income market that are overvalued to ones that offer better values. As more new ETFs are created, we will consider investments in these new ETFs if they offer greater value, a new opportunity with upside or better pricing, and we will sell ETFs in the portfolio that offer less value.

Portfolio updates

Manager

Cratus Capital LLC

Cratus Capital LLC

Daniel Johnedis, CFA, CIC, President and Chief Investment Officer at Cratus Capital LLC, a registered investment advisory firm. Mr. Johnedis has more than 38 years of experience as institutional fixed-income portfolio manager.

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Disclosures

Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

This portfolio was launched on Interactive Advisors on August 24, 2016, when clients were able to start investing in it. All performance information on this page is actual performance of the Portfolio Manager’s account and presented “net of fees”. The actual performance chart is provided for informational purposes only, and should not be used as the basis for making an investment decision. Actual client returns will differ. All Portfolio Manager information including personal data, profiles, and strategies has been provided by the Portfolio Manager. Interactive Advisors makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Interactive Advisors.

All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Performance of the Portfolio Manager's account is calculated by Interactive Advisors on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions (when commissions were charged). Manager returns include trades and positions that fail Interactive Advisors' trading rules, as a result, actual client returns will differ. Interactive Advisors’ advisory fees are simulated and applied retroactively to present the portfolio return “net-of-fees”.

In addition to Interactive Advisors’ management fees, clients will also be charged management fees and other expenses (custodian fees, brokerage commissions, and legal and accounting fees) by ETF issuers if the portfolio contains ETFs.