With one wild quarter in the books since inception, my 2021 Double Net Value Portfolio is up just over 36%, following an 11% uptick since the February update. The portfolio is outperforming the Russell 2000 Index (up 22.7%) and is about in-line with the Russell Microcap Index (up 36.4%). It is currently beating the Russell 2000 Value Index (up 30.7%) but has fallen behind the Russell Microcap Value Index (up 41.3%), which itself is up more than 18% over the past month.
Double Net Value is a tracking portfolio I build every year that is comprised of companies that have the following attributes:
- Companies trade at between 1 and 2 times net current asset value (NCAV)
- Minimum market cap $75 million
- No development stage pharmaceuticals/biotechs
Perhaps for the first time since I've been doing this annual experiment, all names are in positive territory. The top performer is now Amtech Systems (ASYS) (up 97%), which jumped 57% since the last update on the back of better than expected first quarter earnings. Now Inc (DNOW) (up 87%) is the second-best performer after rising 22% in the past month.
Rocky Brands (RCKY) (up 69%) jumped 34% over the month, after reporting much better than expected fourth quarter results, earning $1.41 versus the 82 cents "consensus" (just one analyst). Last week, the company announced a new share repurchase program, and shares are trading at an all-time high.
The worst performers since inception include Network-1 Technologies (NTIP) (up 1.5%), Key Tronic (KTCC) (up 9%), and Adams Resources (AE) (up 16%). Hurco (HURC) (up 16%) flipped into the black following a 26% jump since the last update. Last week the company raised the dividend 8% to 14 cents/quarter, and announced a new share buyback plan.
Here are the remaining names, and performance to date:
Acacia Research (ACTG) : up 69%
Avnet (AVT) : up 25%
FutureFuel (FF) : up 34%
Tutor Perini (TPC) : up 53%
Aware (AWRE) : up 14%
Crimson Wine Group (CWGL) : up 30%
Dril-Quip (DRQ) : up 21%
Gencor (GENC) : up 17%
Lakeland Industries (LAKE) : up 35%
Powell Industries (POWL) : up 29%
VirnetX Holdings (VHC) : up 25%
So far, so good, although solid performance continues to occur on the back of rising small and microcap markets.
