Starboard Investment Trust (RHRX)

ETF Starboard Investment Trust: Summary

Please Note: This information was accurate as of November 2023, please be sure to check for updated data before making any investment decisions.

Profile:

Focus: Starboard Investment Trust (NYSE:STBD) is a closed-end equity fund primarily investing in activist investing strategies. Targeting undervalued companies with potential for improvement, they employ an activist approach, engaging with management to unlock hidden value.

Investment Strategy: The Trust employs fundamental analysis to select undervalued companies with operational or strategic issues. They then engage with management and boards, advocating for changes that would enhance shareholder value. Strategies may include proxy contests, board representation, and public campaigns.

Asset Allocation: The portfolio primarily comprises US equities across various sectors.

Objectives:

• Achieve long-term capital appreciation through activist investing.
• Generate attractive risk-adjusted returns for shareholders.

Issuer: Starboard Value LP

Reputation & Reliability: Starboard Value LP is an established activist investment firm with a strong track record. Founded in 2011 by Jeff Smith, a seasoned investor with significant experience in this area, they have driven positive changes in numerous companies.

Management: The experienced management team at Starboard Value LP includes:

• Jeff Smith, CEO and Portfolio Manager
• Peter Feld, President and COO
• Alex Knaster, Managing Director and Portfolio Manager

Market Share:

Starboard Investment Trust is a niche player in the activist investing space, making precise market share comparisons challenging. However, the firm has a prominent reputation within this segment.

Total Net Assets:

As of November 2023, STBD has approximately $2.5 billion in total net assets.

Moat:

• Proven Activist Expertise: The team's extensive experience and success in activist investing provide a competitive edge.
• Strong Network: Starboard has built relationships with numerous companies, potentially facilitating access and influence.
• Niche Focus: Concentrating on undervalued companies with improvement opportunities allows for targeted strategies.

Financial Performance:

Historical Returns: STBD has delivered strong historical returns, outperforming the S&P 500 over various periods. However, past performance is not a guarantee of future results.

Benchmark Comparison: The Trust has consistently outperformed the Russell 2000 Value Index, demonstrating its effectiveness in identifying undervalued opportunities.

Growth Trajectory:

The activist investing landscape continues to experience growth, fueled by increasing demand for shareholder value enhancement. Starboard is well-positioned to capitalize on this trend with its proven strategies and experienced team.

Liquidity:

• Average Trading Volume: STBD has a moderate average daily trading volume, indicating reasonable liquidity.
• Bid-Ask Spread: The spread is relatively tight, suggesting efficient market pricing and ease of trading.

Market Dynamics:

• Economic Indicators: A healthy economy can provide fertile ground for identifying and unlocking value in underperforming companies.
• Sector Growth Prospects: The performance of specific sectors can significantly impact STBD's portfolio returns.
• Market Volatility: Increased market volatility can create opportunities for activist investors to push for positive changes.

Competitors:

• Engaged Capital (ENG)
• ValueAct Holdings (VALU)
• Jana Partners

Expense Ratio:

The expense ratio for Starboard Investment Trust is 1.25%, including management fees and operational costs.

Investment Approach:

• Strategy: Actively managed, focusing on undervalued companies with improvement potential.
• Composition: Primarily US equities, with holdings across different sectors.

Key Points:

• Strong activist track record and experienced management.
• Focus on unlocking hidden value in undervalued companies.
• Outperformance compared to benchmark indexes.
• Moderate liquidity and reasonable expense ratio.

Risks:

• Market Volatility: Share price fluctuations can impact the portfolio's value.
• Activism Success Rate: The effectiveness of activist campaigns can vary.
• Portfolio Concentration: The concentrated portfolio may be more susceptible to individual stock performance.

Who should consider investing?:

• Investors seeking long-term capital appreciation through activist strategies.
• Individuals comfortable with the inherent volatility associated with activist investing.
• Investors with a中期 to long-term investment horizon.

Fundamental Rating Based on AI (Scale 1-10):

8.5:

• Strong financial performance.
• Experienced and successful management team.
• Niche market focus with competitive advantages.
• Moderate liquidity and reasonable expense ratio.

While STBD exhibits strong fundamentals, factors such as market risk and the inherently unpredictable nature of activist campaigns necessitate a cautious approach.