Jeff Phillips manages the Long-Short Equity model on Covestor with an eye toward maximizing the probability of the portfolio’s profitability by using results of ongoing empirical research. The model has assets stretching across all sectors and uses a market timing strategy.
The top holding in the model is Dynamex Inc (NASDAQ: DDMX), a company that provides ground and air transportation solutions for the shipping needs of businesses. In 2009 the company’s sales fell from $455.8 million in 2008 to $402.1 million, but in 2010 they picked up and rose to $406.4 million. The company’s earnings per share also rose, from $0.98 in 2009 to $1.09 in 2010. DDMX’s total liabilities fell from $41 million in 2008 to $33.4 million in 2009, but then rose to $40.5 million in 2010.
Another holding in the model is LJ International Inc (NASDAQ: JADE) a jewelry designing, branding, marketing and distributing company. In 2008 the company reported total sales of $136.3 million. Sales dropped in 2009 to $110.5 million. During the first two quarters of 2010, JADE had reported a total of $59.9 million in sales. Their total liabilities dropped from $52.9 million in 2008 to $49.9 million in 2009.
Another top holding in the Long-Short Equity model is electronic device testing device developer Lecroy Corporation (NASDAQ: LCRY). The company’s sales have been dropping over the past three years, falling from $160.5 million in 2008 to $134 million in 2009 and finally to $129.3 million in 2010. It is interesting to note that while sales fell in 2009 and 2010, the reported numbers beat the expectations of analysts. The company has been steadily reducing its total liabilities over the same time period. In 2008 their total liabilities were $98.8 million. By 2009 they had dropped to $88.8 million, then to $76.3 million in 2010.
