Crabtree Asset Management

Small Cap Growth

Managed by Crabtree Asset Management
Fundamental analysisSmall cap stocks and ADRs

Crabtree Small Cap Growth is a cross-sector long-only investment strategy. It seeks to outperform the Russell 2000 Growth Index. The strategy seeks to invest in companies that consistently meet three criteria that Barry calls the Crabtree Attributes, laid out below. Potential investments must: 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.

Portfolio risk score
Strategy Stocks
Management fee 1.00%
Min investment $1,000
Performance
Commentary

Performance

Last 30 days 14.5%
Last 90 days 8.5%
Last 365 days -8.5%
Since inception (annualized) 14.3%
2022 (YTD) -14.2%
2021 27.5%
2020 23.6%
2019 21.7%
2018 -5.9%
2017 29.7%

Risk metrics (last 365 days)

Volatility 26.4%
Sharpe ratio -0.42
Sortino ratio -0.66
Maximum drawdown -30.5%
Value-at-risk (95%, 1 week) -6.1%

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Portfolio information

Research

Barry has used the same screens for over 19 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 the Crabtree Attributes are subject to additional fundamental analysis. The Crabtree Small Cap Growth portfolio is rebalanced roughly every six months using this unbiased, disciplined process.

Approach

Barry’s investing style starts with a disciplined process that helps him find companies with the Crabtree Attributes. He personally believes that a portfolio of companies with these attributes can generate positive, risk-adjusted returns. He seeks to build a broad base of knowledge about all small capitalization companies, instead of knowing 'everything' about just a handful of companies. This portfolio will not invest in Exchange Traded Funds (“ETFs”), but will invest in US traded stocks and American Depositary Receipts (“ADRs”). ADRs are receipts of shares of foreign companies that trade on the US stock market. Barry regularly scans the universe of public small cap companies for possible investment ideas. For purposes of this portfolio, small cap companies are companies with market capitalizations between $100 million and $3 billion. Barry searches for small cap companies that consistently generate cash, are maintaining or increasing their market share and are executing on their operational and financial plans.

Sell discipline

The main reason stocks held in the portfolio are sold is because Barry believes they no longer possess the Crabtree Attributes. In that case, the company is sold as part of the rebalancing process, regardless of its stock price or price direction.

Exceptions

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

Crabtree Asset Management

About Crabtree Asset Management

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 December 2021, Morningstar rated the Crabtree Small Cap Growth composite, of the the Crabtree Small Cap Growth strategy offered at Interactive Advisors is a component, as having Four Stars for 5-Year and Overall performance. 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.

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 March 22, 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.

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