I'm Rolling Out My New Active and Passive Portfolios

Once again I'm looking forward to kicking the tires on the concept that triple nets can outperform the benchmarks.
Stocks quotes in this article: AIR, CNXN, PCTI, AE, WELL, AOUT, ASTE, ASXC, BHE, BLDE, CFMS, CODX, CRDE, CWGL, NOW, EMKR, FF, FLXS, FTCO, GEOS, HOOK, HYLN, IMMR, LOTZ, LSF, MOVE, MTRX, NLS, NWPX, ONTF, QSI, RMO, SENEA, SMCI, TALK, UGRO, UVV, VIEW, XGN, XL, ZEUS, ZY

Today, I will begin to roll out my 2021 Triple-Net Active Versus Passive Portfolios, with the set of companies that will comprise the 2020 Passive portfolio. On Monday, I will review the final results of last year's portfolios, and on Wednesday and Friday, reveal the subset of names that will comprise the 2021 Active Portfolio. This year, I will again take a position in each of the Active names, as I did last year.

The criteria are the same as last year:

  • Market capitalization in excess of $100 million
  • No financials or development-stage companies
  • Trading at between 2 and 3 times NCAV (NCAV is calculated by subtracting a company's total liabilities from current assets)

This year, 51 names make the cut, nearly double last year's 27. This year, the Passive Portfolio ends up with 12 names that were in the 2020 version, including AAR Corp (AIR) , Argan (AGX) , Daktronics (DAKT) , GSI Technology (GSIT) , Miller Industries (MLR) , National Presto (NPK) , Park Aerospace (PKE) , PC Connection (CNXN) , Pc Tel Inc (PCTI) , REX American Resources (REX) , Sanmina (SANM) , and Ultralife (ULBI) .

Rounding out the 2021 Passive Triple Net Portfolio:

Adams Resources & Energy (AE)

American Well Corp (WELL)

American Outdoor Brands (AOUT)

Astec Industries (ASTE)

Asensus Surgical (ASXC)

Benchmark Electronics (BHE)

Blade Air Mobility (BLDE)

ConforMIS Inc (CFMS)

Co-Diagnostics (CODX)

Cardinal Ethanol (CRDE)

Crimson Wine Group (CWGL)

NOW Inc (NOW)

EMCORE (EMKR)

FutureFuel (FF)

Flexsteel Industries (FLXS)

Fortitude Gold (FTCO)

Geospace Technologies (GEOS)

Hooker Furniture (HOOK)

Hyliion Holdings (HYLN)

Immersion Corp (IMMR)

Carlotz Inc (LOTZ)

Laird Superfood (LSF)

Movano (MOVE)

Matrix Service (MTRX)

Nautilus (NLS)

Northwest Pipe (NWPX)

ON24 (ONTF)

Quantum-Si (QSI)

Romeo Power (RMO)

Seneca Foods (SENEA)

Super Micro Computer (SMCI)

Talkspace (TALK)

urban-gro (UGRO)

Universal Corp (UVV)

View Inc (VIEW)

Exagen (XGN)

XL Fleet (XL)

Olympic Steel (ZEUS)

Zymergen (ZY)

Portfolio Statistics for the Passive Portfolio:

Average Market Cap: $594 million

Average Price/NCAV Ratio: 2.51

Average Price/Book Ratio: 1.52

Profitable Names TTM basis: 32

Dividend Payers:15

Average Dividend Yield: 1.07%

I am once again looking forward to kicking the tires on the concept that triple nets can outperform the benchmarks --in this case, I will continue to utilize the Russell 2000 Index, Russell Microcap Index, and the Value components of both as benchmarks -- and that an Active approach can outperform Passive.

Have a great weekend!

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At the time of publication, Jonathan Heller had no position in the securities mentioned.

TAGS: Investing | Markets | Stocks | Trading

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