Crabtree Hedged Technology

Managed by Crabtree Asset Mgmt

-2.3% Last 30 days - Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown

Crabtree Hedged Technology

Managed by Crabtree Asset Mgmt

-2.3% Last 30 days - Last 90 days - Last 365 days - Sharpe Ratio - Max Drawdown
Risk score
Strategy Stocks
AUM fee 1.0%
Requirements
• Investment minimum: $50,000
• Margin account
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Crabtree Hedged Technology is a science and technology, long/short investment portfolio. It seeks to outperform the Standard & Poor’s 500 Index. The portfolio is long companies that consistently meet three criteria that Portfolio Manager Barry Randall calls the Crabtree Attributes. Potential investments must have the following three Crabtree Attributes: a) consistently generate cash; b) hold on to or increase their market share; and c) do so while executing on their operational and financial plans. Against the long side of the portfolio are short positions in: a) companies that lack the Crabtree Attributes; and b) a short position in the Invesco S&P SmallCap Information Technology Exchange\raded Fund based on the S&P SmallCap 600® Capped Information Technology Index (ticker: PSCT). The total short position varies between 50% and 90% of the long position, leaving the portfolio between 50% and 10% "net long." The short position may vary depending upon seasonal factors and the macroeconomic outlook. The Crabtree Hedged Technology portfolio was originally created and has been continuously run by Crabtree Asset Management since April, 2015. The portfolio became available to IBKR Asset Management clients in October 2018.

Research

Barry has used the same screens for over 18 years to find his potential investments. His screening process measures cash flow, changes in market share and looks for signs of business model execution. Stocks that he thinks possess or lack the Crabtree Attributes are subject to additional fundamental analysis. The Crabtree Hedged Technology portfolio is rebalanced semi-annually using this unbiased, disciplined process.

Approach

Barry’s investing style utilizes a disciplined process that helps him find companies with all three of the Crabtree Attributes and companies with none of them. Going "long" the former and "short" the latter results in the Crabtree Hedged Technology portfolio.He seeks to build a broad base of knowledge about all tech companies, instead of knowing “everything” about just a handful of companies. The portfolio will invest in Exchange Traded Funds (“ETFs”) and in American Depositary Receipts (“ADRs”). ADRs are receipts of shares of foreign companies that trade on the US stock market.

Allocation discipline

The Crabtree Hedged Technology portfolio seeks to own 20 long positions at all times, offset by between one and five short positions. The portfolio is rebalanced roughly every six months. New long positions usually make up 5% of the long side of the portfolio and new short positions in individual stocks usually make up 3%; the short position in the PSCT ETF may comprise as much as 78% of the total long position. Existing positions that remain in the portfolio during re-balancing are increased or decreased based on price strength or weakness.

Sell discipline

The main reason stocks are sold or short positions are covered is because they either do (or do not) still possess the Crabtree Attributes. Depending upon this, long positions are sold and short positions are bought-to-cover as part of the rebalancing process, regardless of their stock price or price direction.

Exceptions

Barry reserves 10% of the portfolio for companies he believes possess the Crabtree Attributes (or lack them) but were not spotted by his screening process. Companies may not have been caught by the screen because they may have recently gone public, recently spun off from another company, or carry a premium (or discounted) valuation because of a potentially superior (or inferior) business model.

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on December 17, 2018.

Daily returns
Performance
S&P 500 ETF
Manager (net of fees )
Last 30 days -2.3% -6.7%
Last 90 days   -11.8%
Last 365 Days   -2.9%
Since inception 0.5% -6.9%
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About Crabtree Asset Mgmt

Crabtree Asset Management invests in growing technology companies. Barry Randall is the firm's founder and chief investment officer. He has more than 20 years of professional investing experience.

Barry spent five years as a technology stock analyst and 10 more years managing mutual funds that focused on small-cap and technology stocks. He has experience managing mutual funds and separately managed accounts as large as $650 million. Prior to earning his MBA in 1993, he spent six years as a professional computer programmer.

Barry earned a Wall Street Journal 'Category King' award for his co-management of a small cap mutual fund in 2006.

As of September 2017, Morningstar rated the Crabtree Multi-Cap Technology composite, of which the strategy offered at Covestor is a component, as having Four Stars for trailing 3-year, trailing 5-year and Overall

Barry has been quoted regularly in Forbes, US News & World Report, TheStreet.com and E-Commerce Times. He has appeared on CNBC, Bloomberg TV and Fox Business News.

Crabtree Asset Management LLC was founded in 2008 and is headquartered in Saint Paul, Minnesota.

Investment process

Barry regularly scans a universe of 1,400 potential holdings for possible investment ideas. He searches for companies that consistently generate cash, are increasing their market share and are executing their operational and financial plans.

Barry's stock purchases sometimes become takeover targets. Since he first offered the Crabtreee Technology portfolio in 2009, some of Crabtree's holdings have been acquired in M&A transactions.

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-IBKR Asset Management performance information may include performance of non-IBKR Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IBKR 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 IBKR Asset Management's trading rules, as a result, actual client returns will differ. IBKR 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 IBKR Asset Management client account investing in this portfolio. The performance in an IBKR 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 IBKR 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 IBKR 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 IBKR 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 IBKR Asset Management using daily adjusted close prices and include dividend income. More information here. For certain portfolios IBKR 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 IBKR Asset Management has been provided by the Portfolio Manager. IBKR Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IBKR Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IBKR Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IBKR 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.
  9. This portfolio was launched on IBKR Asset Management on October 15, 2018.
  10. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  11. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.