Stone House Capital Management, LLC — 13F Portfolio

Stone House Capital Management, LLC is an SEC-registered investment adviser operating in a hedge-fund-style structure. The firm appears in U.S. regulatory records as an institutional investment manager and files Form 13F with the U.S. Securities and Exchange Commission under CIK #0001589943. Through private funds and separately managed accounts, Stone House Capital Management runs discretionary equity strategies for institutional and other qualified investors. As a 13F filer, the firm is required to report long positions in U.S.-listed equities and certain equity-linked instruments once its reportable holdings exceed the statutory threshold. These quarterly filings aggregate positions across underlying vehicles into a single holdings report, giving external observers a recurring view of the manager’s disclosed long book. The firm’s 13F History extends back to the mid‑2010s, consistent with an established but specialized equity manager rather than a new entrant. Within an advanced 13F analytics platform, Stone House Capital Management’s filings are organized into a continuous 13F Portfolio Composition time series. This allows allocators to study the structure and evolution of the firm’s reported holdings over time—concentration, sector mix, and name turnover—while the original SEC submissions remain the authoritative source of record.

Public information and observed 13F characteristics indicate that Stone House Capital Management, LLC pursues a fundamentally driven, concentrated equity strategy. The portfolio construction style is characteristic of a classic long-term, value-leaning manager: a focused list of individual stocks, typically U.S.-listed, chosen through bottom-up research with an emphasis on business quality and valuation. The investment process centers on detailed company analysis—business models, competitive positioning, balance-sheet strength, and normalized earnings power. The firm seeks situations where it believes the market is mispricing the underlying economics of a business, often due to temporary headwinds, limited analyst coverage, or behavioral dislocations. While the approach is value-oriented, it resembles a blend/GARP profile rather than deep value: Stone House Capital Management generally looks for solid franchises with reasonable growth prospects at prices that provide a margin of safety, not simply the lowest multiple securities. Portfolios inferred from 13F filings are intentionally concentrated. A relatively small number of high-conviction positions typically accounts for a meaningful share of reported exposure, reflecting the manager’s willingness to back its best ideas with significant capital. Additional, smaller positions may represent emerging ideas or more opportunistic situations being sized prudently while the thesis develops. Turnover is generally low to moderate. Core holdings often persist over multiple reporting periods, consistent with multi-year holding horizons. Trading is usually driven by fundamental developments—such as changes in competitive dynamics or capital allocation—or by valuation discipline (trimming or exiting positions as they approach estimated intrinsic value), rather than by short-term market timing. Because Form 13F captures only long U.S.-listed holdings, it shows the long side of what may be an overall long/short equity mandate at the fund level. In a Portfolio Simulator or Backtesting Service, Stone House Capital Management’s disclosed positions can be mapped to market prices to build an approximate Historical Track Record for a notional portfolio that mirrors the visible long book, with the understanding that any short exposure, derivatives, and non-U.S. positions remain outside the 13F lens.

Viewed through its Form 13F filings under CIK #0001589943, Stone House Capital Management, LLC presents as a research-driven hedge fund manager running concentrated, value-leaning equity portfolios. Its reported holdings show a focused list of individual stocks, diversified across sectors but clearly differentiated from broad indices, with turnover patterns consistent with patient, fundamental investing rather than high-frequency trading. For allocators leveraging a 13F analytics platform, the primary insights lie in examining how the firm’s 13F Portfolio Composition has evolved over time: the stability and sizing of core positions, changes in sector balance, and the cadence with which new ideas are introduced or legacy holdings are retired. By feeding this holdings history into a Portfolio Simulator or Backtesting Service and running Performance Backtests Online, users can construct a proxy Historical Track Record and evaluate volatility characteristics, Max Drawdown Depth, and Sharpe Ratio for a long-only replication of the disclosed book. Because 13F data capture only reportable long U.S.-listed positions at quarter-end, they provide a partial but informative lens on Stone House Capital Management’s overall activity. Short exposure, non-U.S. investments, and intra-quarter trading—if used—are not visible in this framework. A central question for further due diligence is how the firm’s concentrated, value-oriented process and portfolio construction adapt to shifts in market regime—for example, extended growth-led markets, abrupt rotations back to value, or changes in interest-rate and inflation dynamics—and how that regime sensitivity may influence the robustness of its risk-adjusted outcomes in future cycles.

The risk characteristics implied by Stone House Capital Management’s filings are those of a concentrated, fundamentally selected long equity portfolio. Key elements of the risk profile include: - Concentration risk: A finite set of high-conviction positions accounts for a substantial portion of reported exposure. Company-specific events—earnings surprises, management changes, regulatory developments, or shifts in industry structure—can therefore have a significant impact on the portfolio’s capital path. - Equity market exposure: The strategy is structurally long-biased within the 13F universe, and thus participates in broad equity drawdowns. The degree of participation depends on overall beta, sector composition, and the interaction of value and quality factors with the prevailing regime. - Style and factor tilts: A value-oriented blend approach often leads to exposures in quality, value, and sometimes smaller-cap segments. These style tilts can drive periods of relative outperformance or underperformance as markets rotate between growth and value, cyclical and defensive, or large- and small-cap leadership. Because risk management relies primarily on security selection, valuation discipline, and diversification across sectors rather than on systematic hedging, the long book can experience meaningful interim drawdowns during stressed markets or adverse style regimes, even when the long-term investment theses remain intact. Conversely, the same concentration and style exposure can generate strong upside when markets reward fundamental improvement and valuation recovery in the types of companies the firm favors. Using the firm’s 13F History as input to a risk-analytics framework, allocators can reconstruct indicative portfolios at each quarter-end and estimate volatility, beta relative to relevant equity benchmarks, and downside behavior during historical stress windows. Diagnostics such as Max Drawdown Depth over observable periods, combined with risk-adjusted outcome metrics like Sharpe Ratio, provide a quantitative view of how a notional portfolio aligned with Stone House Capital Management’s disclosed holdings would have balanced upside participation against drawdown risk. Factor and sector attribution can further separate the contributions of broad market exposure, style tilts, and stock selection.