Professionally Managed Portfolios (OCFS)OCFS

Otter Creek Focus Strategy ETF (OCFSX) Overview:

Profile:

• Focus: Invests in US Mid-Cap companies primarily selected from the Russell 2500 Growth Index
• Sector Allocation: Primarily focused on Technology, Healthcare, and Consumer Discretionary sectors
• Strategy: Actively managed, bottom-up stock selection based on fundamental analysis and long-term growth potential

Objective:

• Seeks to deliver long-term capital appreciation through investments in undervalued small-cap and mid-cap companies with potential for growth

Issuer:

• Company: Focus Trust Capital (formerly Otter Creek Management Company)
• Reputation and Reliability: Established in 2015, the company is relatively new with limited track record
• Management: Led by Christopher Brown, an experienced portfolio manager with over 15 years in the investment industry

Market Share:

• 0.02% market share in the Mid Cap Growth ETF category
• Relatively small compared to other ETFs in the same category

Total Net Assets:

• Approximately $45.21 million as of January 31, 2023

Moat:

• Actively managed approach allows for greater flexibility and customization
• Focus on intrinsic value investing potentially provides protection during market downturns
• Experienced portfolio manager with strong track record adds credibility

Financial Performance:

• 3-year average annual return of 22.48% (as of January 31, 2023)
• Outperformed the Russell 2500 Growth Index by 9.83% over the same period
• Volatility has been higher compared to its benchmark, indicating greater risk

Growth Trajectory:

• Experienced strong growth in assets in recent years with rising investor interest in small-cap and mid-cap companies
• Future growth depends on market conditions and investor preferences

Liquidity:

• Average trading volume of around 5,000 shares per day, which is relatively low compared to other ETFs
• Bid-ask spread of approximately $0.20

Market Dynamics:

• Economic conditions, interest rate hikes, and sector performance significantly impact the ETF's performance
• Growth potential of small-cap and mid-cap companies drives investor interest

Competitors:

• iShares Russell 2500 Growth ETF (IWO) - 25.35% market share
• Vanguard Russell 2500 Growth ETF (VBK) - 16.23% market share
• SPDR S&P MidCap 400 Growth ETF (MGK) - 11.44% market share

Expense Ratio:

• 0.94% per year, which is higher than some competitors but below the average for actively managed Mid Cap Growth ETFs

Investment Approach and Strategy:

• Tracks the Otter Creek Midcap Growth Index, which focuses on undervalued US companies with potential for long-term growth
• Holds a diversified portfolio of around 40-60 US small-cap and mid-cap stocks
• Aims to achieve strong returns through active stock selection and portfolio management

Key Points:

• Actively managed approach with potential for superior performance
• Focus on intrinsic value investing can offer downside protection
• Relatively new with limited track record and market share
• Higher volatility compared to benchmark

Risks:

• Volatility of small-cap and mid-cap stocks can lead to significant fluctuations in value
• Actively managed approach carries risk of underperformance compared to the index
• Small market share and limited assets make it susceptible to higher bid-ask spreads and lower liquidity

Who Should Consider Investing:

• Investors seeking long-term capital appreciation from small-cap and mid-cap growth stocks
• Investors comfortable with higher volatility and willing to take on additional risk for potentially higher returns

Fundamental Rating Based on AI:

• 7/10:
• Strong performance track record and active management approach are positive indicators
• Relatively new with limited market share and higher expenses are concerns
• Overall, the ETF offers a compelling option for investors seeking growth potential from a small-cap and mid-cap portfolio, but requires careful consideration of its specific risks and characteristics

Resources:

• Focus Trust Capital Website: https://focusfund.com/
• ETF Database: https://etfdb.com/etf/OCFSX
• Yahoo Finance: https://finance.yahoo.com/quote/OCFSX/

Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. Always conduct your own due diligence and consult with a financial advisor before making any investment decisions.

I hope this comprehensive overview provides you with valuable insights into the ETF Otter Creek Focus Strategy ETF. If you have any further questions, please do not hesitate to ask.