Starboard Investment Trust (RHTX)RHTX

ETF Starboard Investment Trust Summary:

Profile: Starboard Investment Trust (STBD) is a closed-end fund that invests primarily in publicly traded equity securities of U.S. and non-U.S. companies. The fund focuses on activist investing, seeking to influence the management of portfolio companies to maximize shareholder value. STBD has a diversified portfolio across sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective: The primary investment goal of STBD is to achieve long-term capital appreciation through a combination of capital gains and dividend income.

Issuer: Starboard Value LP (SVB) is the issuer of STBD.

Reputation and Reliability: SVB is a well-respected activist hedge fund with a strong track record of shareholder activism. The firm has been recognized for its successful campaigns to improve corporate governance and unlock shareholder value. The management team has extensive experience in investing and activism.

Market Share: STBD is a relatively small closed-end fund with a market share of around 0.5% within its sector.

Total Net Assets: As of November 7, 2023, STBD has total net assets of approximately $919 million.

Moat: STBD's competitive advantage lies in its differentiated investment strategy and the experience of its management team. The fund's focus on activist investing allows it to potentially generate higher returns than passively managed funds.

Financial Performance: STBD has delivered strong historical performance, outperforming its benchmark index and generating significant alpha for investors. However, past performance is not indicative of future results.

Benchmark Comparison: STBD has outperformed the S&P 500 Index over various time periods, demonstrating its ability to generate alpha.

Growth Trajectory: STBD's growth trajectory is tied to the success of its activist campaigns and the performance of its portfolio companies. Given the firm's expertise and track record, it has the potential for continued growth.

Liquidity:

• Average Trading Volume: STBD has an average trading volume of approximately 100,000 shares per day.
• Bid-Ask Spread: The bid-ask spread for STBD is typically narrow, suggesting high liquidity.

Market Dynamics: The ETF market is experiencing rapid growth, with investors increasingly turning to diversified investment options. The success of activist strategies has also contributed to the popularity of funds like STBD.

Competitors: Key competitors of STBD include other closed-end funds with activist strategies such as ValueAct Capital (VALU) and Trian Fund Management (TRNTF).

Expense Ratio: STBD has an expense ratio of 1.45%, which is higher than the average for its category.

Investment Approach and Strategy:

• Strategy: STBD actively manages its portfolio, seeking to identify undervalued companies where its activism can create shareholder value.
• Composition: The fund primarily invests in equity securities across various sectors, with a focus on large-cap companies.

Key Points:

• Activist investment strategy with a focus on shareholder value creation.
• Experienced management team with a strong track record.
• Strong historical performance and potential for continued growth.
• Relatively high expense ratio.

Risks:

• Volatility: STBD's activist strategy can lead to higher volatility than passively managed funds.
• Market Risk: The fund's performance is tied to the performance of its underlying investments, which can be affected by market conditions.
• Activist Risk: Activist campaigns may not always be successful, which could negatively impact the fund's performance.

Who Should Consider Investing: Investors seeking long-term capital appreciation through activist investing with the potential for higher returns than passively managed funds might consider STBD. However, investors should be comfortable with the fund's volatility and the risks associated with its investment strategy.

Fundamental Rating Based on AI: 7 out of 10.

Justification: STBD's strong financial performance, experienced management team, and differentiated investment strategy are positive factors. However, the higher expense ratio and potential for increased volatility are drawbacks. Overall, the fund's fundamentals are sound, but investors should carefully consider its risks and suitability for their individual portfolios.

Resources:

• Starboard Value LP: https://starboardvalue.com/
• ETF Starboard Investment Trust (STBD): https://www.nasdaq.com/market-activity/funds-and-etfs/stbd
• Morningstar: https://www.morningstar.com/funds/xnas/stbd/quote
• Seeking Alpha: https://seekingalpha.com/symbol/STBD

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.