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Little House Capital
35 Braintree Hill Park
Suite 100
Braintree, MA 02184
Product Overview
Investment Objective
Seeks to achieve reasonable income with the potential for capital appreciation. The investment portfolio aims to capture a dividend yield that exceeds the yield of the S&P 500 index and selects companies based on fundamental factors and underlying free cash flow metrics.
Typical Investor
Risk-averse, value-oriented individuals seeking to accumulate steady and consistent income from their investment portfolio while maintaining US Large-Cap Exposure.
Investment Process
LHC’s investment team provides unique institutional-quality concentration toward large-cap compounders with demonstrated records of sustainable cash flow growth. Security selection consists of a multidimensional equity screening process coupled with top-down expertise that incorporates greater macroeconomic and industry themes. Both our allocation and selection processes are very methodical and focused on income generation and growth for clients while maintaining a low volatility profile. All stocks held offer a dividend yield. Use of dynamic portfolio reporting systems, proprietary databases, and Bloomberg Terminal Access allows our team to actively monitor and manage holdings with a high level of conviction.
Product Facts
| Structure | Separately Managed Account |
| Inception | 12-31-13 |
| Category | US Large Cap Value |
| Benchmark | 50/50 S&P 500 Russell 1000 Value |
| Holdings | 40-60 |
| Target Tracking Error | 3%-6% |
| Sector Deviation | +/-7% |
| Annual Turnover | 25%-50% |
| Initial Position Size | 0-5% |
For Advisors
Portfolio
As of 09/30/2023
Sector Weightings
| Sector | Portfolio | Benchmark |
|---|---|---|
| Information Technology | 23.94% | 18.64% |
| Health Care | 14.82% | 14.39% |
| Financials | 13.37% | 16.64% |
| Industrials | 10.95% | 10.77% |
| Consumer Staples | 9.56% | 7.25% |
| Consumer Discretionary | 5.69% | 7.70% |
| Energy | 6.67% | 6.60% |
| Communication Services | 4.08% | 7.04% |
| Utilities | 3.30% | 3.55% |
| Real Estate | 2.11% | 3.48% |
| Cash | 3.33% | 0.33% |
| Materials | 2.18% | 3.61% |
Top 10 Holdings
| Top 10 Holdings | Value |
|---|---|
| Microsoft | 5.6% |
| JP Morgan Chase | 5.1% |
| Apple | 4.8% |
| Walmart | 4.7% |
| Visa | 3.4% |
| Chevron | 3.2% |
| Merck & Co. | 3.1% |
| Danaher | 2.9% |
| Exxon Mobil | 2.8% |
| UnitedHealth | 2.6% |
Portfolio Characteristics
| Characteristics | Portfolio | Benchmark |
|---|---|---|
| Dividend Yield | 2.4 | 2.4 |
| P/E – Forecast 12M | 18.1 | 20.7 |
| Current P/E | 18.0 | 18.5 |
| Price-to-Cash Flow | 13.0 | 12.9 |
| Price-to-Sales | 2.3 | 1.9 |
| ROE | 22.8 | 14.1 |
| Market Cap | 476.4B | 384.6B |
Performance
As of 09/30/2023
| Returns | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Income+ (Gross) | 4.7% | 13.8% | 17.7% | -4.4% | 28.0% | 12.9% | 24.0% | -5.5% | 0.6% |
| Dividend Income+ (Net) | 3.7% | 12.8% | 16.7% | -5.4% | 27.0% | 11.9% | 23.0% | -6.5% | -0.2% |
| R1000V SPX 50/50 | -1.2% | 14.6% | 16.7% | -7.0% | 29.0% | 10.6% | 26.9% | -12.8% | 7.4% |
| Russell 1000 Value | -3.8% | 17.3% | 12.7% | -8.8% | 26.5% | 2.8% | 25.1% | -7.6% | 1.8% |
Growth of $1 Million Since Inception
Documents
Contact Us for Detailed Performance Report
Investment products and strategies are not guaranteed by Little House Capital LLC, are not insured by the FDIC or by any other government agency and may lose value. The performance quoted represents past performance and does not guarantee future results. Performance is net-of-fees based on a standard fee of 1.0%/yr. Holdings and allocation may not reflect our current investment views and should not be used as the basis for an investment decision. Determining the suitability of this product will depend on feedback and risk tolerance of individual clients. Performance for Dividend Income plus was achieved at People’s United Bank Wealth Management 12/31/2013 to 10/31/2017. For legal and tax matters, legal and tax advisors should be consulted. All material is believed to be reliable, but accuracy is not guaranteed. This is not a warranty for liability on decisions based on such information. The S&P 500 and Russell 1000 Value are designed to be leading indicators of U.S. Equities and is meant to reflect the risk/return characteristics of the large cap universe. This is not a solicitation for any order to buy or sell securities. Performance, risk/reward characteristics, and charts provided by Bloomberg. Copyright by Little House Capital.