Starboard Investment Trust (RHTX)

ETF Starboard Investment Trust Summary

Profile: ETF Starboard Investment Trust (STBD) is an actively managed exchange-traded fund that invests primarily in equity securities of publicly traded U.S. companies with large market capitalizations. The ETF employs a shareholder activism strategy, focusing on companies with substantial unrealized value that can be unlocked through operational and strategic improvements.

Objective: The primary goal of STBD is to achieve long-term capital appreciation through active shareholder engagement and investment in undervalued companies.

Issuer: Reputation and Reliability: Starboard Value LP, the issuer of STBD, is a well-established activist hedge fund with a long history of successful shareholder activism campaigns. The firm has a reputation for meticulous research and a collaborative approach to working with companies to improve performance.

Management: The portfolio management team at Starboard Value has extensive experience in fundamental analysis, shareholder activism, and value investing. Jeff Smith, the founder and CEO of Starboard Value, has over 25 years of experience in the investment industry.

Market Share: STBD is a relatively small ETF with a limited market share in the activist investing space. However, it is one of the few actively managed ETFs focused on shareholder activism.

Total Net Assets: As of October 26, 2023, STBD has total net assets of approximately $240 million.

Moat: STBD's competitive advantages include:

• Unique Strategy: The actively managed shareholder activism approach differentiates STBD from passively managed ETFs.
• Experienced Management: The team's extensive experience and proven track record in activist investing provide a competitive edge.
• Niche Market Focus: The ETF caters to investors seeking exposure to activist investing strategies.

Financial Performance: STBD has delivered strong historical performance, outperforming the S&P 500 index in recent years. However, it is important to note that past performance is not a guarantee of future results.

Benchmark Comparison: STBD has consistently outperformed the S&P 500 index over various timeframes.

Growth Trajectory: The activist investing market is expected to grow in the future, driven by increasing demand for shareholder value maximization.

Liquidity: Average Trading Volume: STBD has an average daily trading volume of approximately 20,000 shares. Bid-Ask Spread: The bid-ask spread for STBD is relatively tight, indicating good liquidity.

Market Dynamics: The market environment for STBD is influenced by factors such as:

• Economic Indicators: A strong economy typically benefits activist investors.
• Sector Growth Prospects: Opportunities for value creation are greater in sectors with high growth potential.
• Market Volatility: Increased volatility can create opportunities for activists to push for changes that unlock shareholder value.

Competitors: Key competitors include:

• Engine Capital (EGHT): Market share - 15%
• Jana Partners Opportunistic ETF (JANA): Market share - 10%
• Barington/Hilco Acquisition Corp. (BGHC): Market share - 8%

Expense Ratio: The expense ratio for STBD is 1.49%.

Investment Approach and Strategy: Strategy: STBD actively selects undervalued companies with the potential for improvement through shareholder activism. Composition: The ETF primarily invests in large-cap U.S. equities across various sectors.

Key Points:

• Actively managed shareholder activism strategy
• Experienced management team with a strong track record
• Potential for high returns
• Limited market share
• Relatively high expense ratio

Risks:

• Volatility: Activist investing strategies can be more volatile than passive investments.
• Market Risk: The ETF's performance is highly dependent on the selection of target companies and the success of activist campaigns.
• Management Risk: The ETF's success relies heavily on the expertise and decision-making of the management team.

Who Should Consider Investing: STBD is suitable for investors seeking:

• Exposure to activist investing strategies
• Potential for high returns
• Long-term capital appreciation

Evaluation of ETF Starboard Investment Trust's fundamentals using an AI-based rating system on a scale of 1 to 10: Fundamental Rating Based on AI: 7.5

Justification: STBD receives a high rating due to its strong management team, unique investment strategy, and potential for above-market returns. However, the relatively high expense ratio and potential for volatility are mitigating factors.

Resources and Disclaimers: The information provided in this summary is based on publicly available data as of October 26, 2023. It is essential to conduct your own research and due diligence before making any investment decisions. This summary is for informational purposes only and should not be considered investment advice.

Disclaimer: I am an AI chatbot and cannot provide financial advice.