Team 7 Portfolio Screening.pptx

Team 7 Portfolio Screening.pptx - WACC Asset Management...

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WACC Asset Management Group 7 November 28, 2018 Arham Chohan Imran Kheraj Kenneth Loong Alex Vegh Sharon Yang
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Agenda Small-Cap Family-Owned Businesses The Magic Formula Cash-Rich Firms Piotroski High F-Score-Value Equally Weighted Portfolio [Company Logo]
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Small-Cap Family-Owned Businesses
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Small-Cap Family-Owned Businesses Note: All figures in US$ unless otherwise stated. Source: Credit Suisse [Company Logo] What matters isn’t what a person has or doesn’t have; it is what he or she is afraid of losing.” - Nassim Taleb, Skin in the Game Revenue Growth EBITDA Margin Net Debt / EBITDA Family-owned businesses have a longer-term investment horizon that allows them to focus on through-cycle growth, margins, and returns
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Small-Cap Family-Owned Businesses (Cont’d) Note: All figures in US$ unless otherwise stated. Source: Credit Suisse [Company Logo] Consistent Outperformance Small Caps Typically Outperform Large Caps Superior fundamentals lead to consistent share price outperformance
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Small-Cap Family-Owned Businesses (Cont’d) Note: All figures in US$ unless otherwise stated. Source: CapitalIQ [Company Logo] Companies traded on major U.S. exchanges Market cap between $50MM and $500MM Individual / holding company ownership >20% Manual scrub 70 468 1,880 5,806
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Small-Cap Family-Owned Businesses (Cont’d) Note: All figures in US$ unless otherwise stated. Source: HowTheMarketWorks [Company Logo] Portfolio Statistics Top 3 Winners / Losers Portfolio Performance Portfolio Russell 2000 Total Return (12.4%) (11.9%) Sharpe Ratio (2.94) (2.54) Beta 0.56 1.00 VaR (5%) (2.93%) (2.86%)
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The ONE Group Hospitality (NASDAQ:STKS) Note: All figures in US$ unless otherwise stated. As of market close November 23, 2018. Source: Thomson Reuters Company Description Strategy Alignment Share Price Performance Share Price $2.85 Market Capitalization $81MM Enterprise Value $90MM Beta 0.71 NTM P/E 11.0x NTM EV/EBITDA 6.5x Market Statistics Owns and licenses high-energy, upscale steakhouses under the STK brand Provides turn-key food & beverage management services for hospitality clients Small-cap stock ~25% owned by founder Jonathan Segal
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The Magic Formula
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The Magic Formula Note: All figures in US$ unless otherwise stated.
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