Sparrow Capital Management

Fundamental Growth



  • Strategy Stocks
This portfolio is made up of companies that have consistently demonstrated the ability to increase sales and earnings, and improve their cash flow and book values over multiple economic cycles. I carefully study company filings including quarterly and annual reports to find stocks that match my criteria for growth potential.
My screening process helps me identify companies that meet specific criteria for growth, cash generation and other metrics. I then value these businesses using a discounted cash flow model and buy their stocks when the market price indicates sufficient upside potential. My Fundamental Growth portfolio is long-only and invests in companies of all capitalizations.
I use screens to identify industries and companies that show consistent earnings power over multiple economic cycles.

Then, I rate stocks using a proprietary matrix of various fundamental, quantitative, and technical factors. Some of these factors include above average earnings per-share growth rates, above average return on equity, excess free cash flow, low debt-to-equity ratios, and shareholder friendly management.

Finally, I review the company's original source material including quarterly and annual reports. I also participate in quarterly conference calls and webcasts and read independent analyst reports in an effort to buy value stocks at opportune times.


My research helps me to diversify the portfolio’s holdings across multiple sectors. I often will have different weightings for each sector, as compared to the S&P 500 Index.
I sell positions when the original reason for the purchase no longer exists or when my research is telling me that stocks are overvalued. Sell determinations are made on a case-by-case basis.
None.

Portfolio Manager performance

-1.0%

Last 30 days

30D

1.7%

Last 90 days

90D

7.9%

Last 365 days

365D

Quarterly vs S&P500

Quarterly vs S&P500

Risk score

  • 13.0%

    Best quarter

  • -16.4%

    Worst quarter

    • 1.5% fee
    • $20,000 min
  • Required: Margin account

Portfolio Manager performance graph

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. Client account performance is displayed on the client dashboard.

Performance Portfolio inception April 14, 2010

as of August 17, 2017 Manager (net of fees ) S&P 500
Last 30 days -1.0% -1.2%
Last 90 days 1.7% 2.0%
Last 365 Days 7.9% 11.4%
Since inception (Annualized) 9.3% 9.9%
2017 (YTD) 10.5% 8.5%
2016 6.7% 9.5%
2015 1.6% -0.7%
2014 10.7% 11.4%
2013 23.4% 29.6%
2012 9.0% 13.4%
2011 5.8% -0.0%

Risk metrics Last 365 days

as of August 17, 2017 Manager (net of fees ) S&P 500
Volatility 8.5% 8.3%
Sharpe Ratio 0.81 1.25
Sortino Ratio 1.10 1.66
Maximum Drawdown -6.4% -4.7%
Value-at-risk (95%, 1 week) -2.0% -1.9%
vs. S&P 500
Information Ratio -0.85
Alpha -2.1%
Beta 0.91
R-Squared 0.78

Exposure

40.7%
21.3%
10.9%
9.7%
9.0%
  • Consumer, Non-cyclical
  • Communications
  • Financial
  • Technology
  • Consumer, Cyclical

Top 5 securities

6.1%
5.9%
5.4%
5.3%
5.2%
View all

Portfolio commentary

  1. Profile Picture Fed guessing game weighs on stocks October 19, 2015

    Investors struggle to discern Fed timing on interest rates.

  2. Profile Picture US stocks heading higher? April 24, 2015
  3. Profile Picture US economy: Why the glass is half full March 15, 2015
  4. Profile Picture Why we are bullish on stocks January 27, 2015
  5. Profile Picture Why October may present a buying opportunity for stocks October 07, 2014
Show more

Latest transactions Average trades per month 1.3

Executed Symbol Security Type Price
July 18, 2017 UNH UnitedHealth Group Inc Buy $185.02
July 18, 2017 JNJ Johnson & Johnson Buy $133.18
July 18, 2017 FB Facebook Inc Sell $161.50
June 28, 2017 LMT Lockheed Martin Corp Buy $280.38
June 28, 2017 DPZ Domino's Pizza Inc Buy $213.47
June 22, 2017 VFC VF Corp Sell $56.10
June 22, 2017 DLTR Dollar Tree Inc Sell $68.13
June 08, 2017 TAP Molson Coors Brewing Co Sell $86.84
View all

Manager's other portfolios

Sparrow Capital Management - Freedland Healthcare Freedland Healthcare
Sparrow Capital Management - Sparrow Fund Limited Partners Sparrow Fund Limited Partners

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Important Information

  1. 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.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily benchmark prices and do not include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.