Cable Car licenses only a portion of its trading data to Covestor. At this time, Covestor models are limited to highly liquid stocks listed on US exchanges and do not include non-equity securities. Cable Car’s investments in smaller-capitalization securities, stocks listed on international exchanges, derivatives hedges, bonds, illiquid special situations, and other unsuitable investments are not included in the Covestor model. Covestor, under its sole discretion, may replicate trades in the model portfolio for its clients.
Within these constraints, the investment approach is the same, and the Covestor model portfolio managed by Cable Car is included in the Cable Car Composite. Larger-capitalization, US-listed equity positions held by Cable Car clients will generally be held in the model portfolio, although Cable Car undertakes no obligation to license any particular trade opportunity to Covestor. The performance of the model portfolio since August 22, 2013 includes personal account history that predates the formation of Cable Car Capital LLC. Cable Car’s principals have a beneficial interest in the model portfolio used to transmit trading data to Covestor. In keeping with Cable Car’s trade allocation policy, trades in the model portfolio are placed only after being executed for Cable Car’s other client accounts.
Posted in: Distribution