Portfolio Overview as of Q1 2016
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As of March 31, 2016, Kyle Kauss's portfolio aims for long-term capital growth through strategic investments in U.S. stocks, focusing on a concentrated number of holdings and minimizing diversification to enhance returns. The portfolio features a mix of high-growth companies with strong fundamentals, evidenced by significant performance metrics like a 409.09% three-year EPS growth and a 71% portfolio return since inception. Key holdings include Facebook, Starbucks, and Equinix, with a total AUM of approximately $5,200 and an investment strategy informed by macroeconomic analysis.
Portfolio Overview as of Q1 2016
- 1. Portfolio Overview As of March 31, 2016 Kyle Kauss Portfolio Manager +1 630 803 2950 kylekauss@gmail.com 1
- 2. Overview 2 Investment Objective Seeking long-term growth of capital by investing in U.S. stocks. Highlights • Top-down fundamental research drives the security selection process. • Stock and sector weightings are a reflection of my conviction in each portfolio holding. • Minimizing diversification while monitoring foreign exposure to increase return. • My strategy has a long-term investment horizon and analyzes a company’s fundamentals within the context of a three-to-five year outlook. AUM ~$5,200 Inception Date 7/17/2014 Number of Holdings 8 Average Market Cap ~$171 billion
- 3. Investment Strategy 3 Industry Leading Company Sub-sector Analysis Sector Analysis Macroeconomic Analysis Fishing in the right pond during the right season
- 4. Investment Process 4 Macroeconomic Backdrop Equity Research Economic themes Research ideas Sector Allocation Relative Valuation Analysis Portfolio Management Risk Management Constant Monitoring A Holistic View Relevant economic, social, political, sector, and security considerations influence my capital market expectations and portfolio strategies, which leads to the construction and revision of my portfolio.
- 5. Portfolio Characteristics 5 Ratios P/E 43.96 P/B 7.20 Dividend Yield 1.13% Sharpe 0.14 Turnover 0% Alpha 18.11% Beta 0.86 * Ex-Facebook is 14.24%. 1. Calculated as weighted averages. 2. No data on QQQ NTM P/E so trailing P/E is used in its place. Portfolio 1 S&P 500 Growth 3 Yr. Diluted EPS Growth 409.09% * 1.73% 3 Yr. Sales Growth 18.11% -7.18% Valuation P/E (NTM)2 30.93 17.44 P/E (TTM) 43.96 18.71 P/B 7.20 2.80 Returns ROE 25.30% 12.04% ROA 11.25% 2.57% ROIC 23.40% N/A
- 6. Portfolio Allocation 6 Holdings % of Portfolio Facebook 19.74 Starbucks 16.07 Equinix 12.71 QQQ 10.50 Apple 10.48 Delta Air Lines 10.30 Walgreens Boots Alliance 9.72 Nike 9.45 Cash 1.04 1.04% 9.72% 10.50% 10.30% 12.71% 25.52% 30.22% Sector Weighting Cash Consumer Staples
- 7. Portfolio Performance1 71. Proof of performance via statements and models are available upon request. 4.07% 45.26% -10% 0% 10% 20% 30% 40% 50% Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Return Since InceptionS&P 500 Portfolio
- 8. Portfolio Performance 81. Calculated as monthly time-weighted rate of return. 13.17% 9.88% 4.10% 1.97% 1.97% 9.31% 4.85% -0.27% 4.30% 0.44% -0.23% -7.19% 6.25% 0.77% -10% -5% 0% 5% 10% 15% Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Performance by Quarter1 Portfolio S&P 500
Editor's Notes
- #5: Macroeconomic backdrop Used as a backdrop to identify investment themes and relative value Sector Research Fundamental sector and equity research is used to identify the best securities to invest in Relative valuation analysis Determining the company’s value taking into account the rest of the portfolio and potential companies Risk Management - Minimize risk by investing in only U.S. equities Firm-specific risk Systematic risk Possible hedging via options Reduce beta via low volatility firms or shorts Foreign exposure Analyze individual company revenue exposure
- #6: I am currently bullish on the consumer and so a majority of my positions have direct exposure to the consumer and their spending habits
- #7: I am currently bullish on the consumer and so a majority of my positions have direct exposure to the consumer and their spending habits