Conco Cap Focused Equity ETF (CCFE)

Overview

CCFE is an actively managed exchange-traded fund (ETF) that specializes in investing in a diverse range of equity securities. This includes common stock, preferred stock, Real Estate Investment Trusts (REITs), and American Depository Receipts (ADRs). The fund is designed to encompass stocks across various capitalizations but places a particular emphasis on mid-cap companies. The selection process begins with a comprehensive equity universe primarily from the United States and Canada, where both qualitative and quantitative analyses are utilized to identify undervalued companies that may be misapprehended by the market on a temporary basis.

The investment strategy employed by CCFE hinges on bottom-up fundamental analysis, focusing on the intrinsic value of potential investments through detailed financial modeling. Key considerations in this analysis include the financial health of the companies, their growth prospects, anticipated future earnings, cash flow, and dividend payouts. The fund particularly emphasizes high-quality enterprises that demonstrate excellent management capabilities and robust capital strategies.

Typically, the portfolio curated by CCFE consists of 20 to 30 carefully selected companies, chosen through a proprietary ranking system that evaluates factors such as quality, valuation, and timing. Position sizes are flexible, allowing for adjustments as necessary, with the top ten holdings potentially representing over 50% of the fund's net assets.

Products and Services

• Actively Managed ETF

  CCFE operates as an actively managed ETF, which allows for dynamic management of investments in response to market conditions and opportunities. This approach aims to enhance returns by capitalizing on short-term market misperceptions and identifying undervalued securities.

• Equity Investing

  The fund invests in a variety of equity securities, which includes common and preferred stocks, REITs, and ADRs. This diverse investment strategy seeks to balance risk and reward by tapping into different segments of the equity market.

• Mid-Cap Focus

  Although the fund can invest in stocks of any capitalization, it primarily targets mid-cap companies. This focus is based on the belief that such companies often possess substantial growth potential while being less volatile than large-cap stocks.

• Qualitative and Quantitative Analysis

  CCFE employs a rigorous selection process that combines qualitative insights and quantitative data. This dual approach enables a comprehensive understanding of potential investment opportunities, ensuring that the fund identifies companies with strong fundamentals that may be undervalued by the market.

• Bottom-Up Fundamental Analysis

  The investment process centers around bottom-up analysis, which means that investment decisions begin at the company level. Key financial metrics such as earnings potential, cash flow, and overall financial health are evaluated to determine intrinsic value.

• Proprietary Ranking System

  CCFE utilizes a unique ranking system to evaluate potential portfolio candidates based on quality, valuation, and timing factors. This system aids in the selection of high-potential investments and helps maintain a robust portfolio.

• Portfolio Diversification

  Holding a concentrated yet diversified portfolio of 20-30 companies allows CCFE to manage risks effectively while pursuing higher returns. The fund's flexibility in position sizing further enhances its ability to adapt to changing market conditions.