Stone House Investment Management, LLC — 13F Portfolio

Stone House Investment Management, LLC is a registered investment advisory firm based in Larchmont, New York, a community in Westchester County situated within the broader New York metropolitan area. Founded by Jeffrey Gelfand, the firm provides investment management services to high-net-worth individuals, families, and institutional clients. Stone House Investment Management operates with the focused, principal-led structure characteristic of boutique advisory firms in the greater New York area, where the founder's personal investment philosophy and experience form the foundation of the firm's approach to capital stewardship. The firm files quarterly 13F disclosures with the Securities and Exchange Commission under CIK #0001696497, with filings extending back to approximately 2016. This multi-year filing history provides a substantive dataset spanning a diverse range of market conditions — including the steady equity expansion of 2016-2019, the sharp COVID-19 pandemic selloff and V-shaped recovery of 2020, the speculative growth euphoria of 2021, the interest rate-driven correction of 2022, and the AI-catalyzed market recovery of 2023-2024. For a value-quality oriented practice, this filing period is especially informative, as it captures the dramatic oscillation between growth and value factor leadership that has defined the post-2016 equity landscape. Larchmont's location in Westchester County places Stone House in proximity to both the deep capital markets infrastructure of New York City and the affluent suburban communities that represent a significant concentration of high-net-worth households in the Northeast. This positioning allows the firm to access institutional-grade research, market intelligence, and professional networks while serving a client base that values the personalized attention and direct principal access that distinguishes boutique advisory practices from larger institutional platforms.

Stone House Investment Management employs a quality-value equity strategy grounded in fundamental analysis and disciplined valuation assessment. Under the leadership of founder Jeffrey Gelfand and partner Jonathan Siegel, the firm's investment process centers on identifying companies that are trading below their intrinsic value while exhibiting strong fundamental characteristics — including robust balance sheets, consistent cash flow generation, attractive returns on invested capital, and defensible competitive positions within their respective industries. This approach reflects a classic value-investing heritage enhanced by modern quality screens that filter out the value traps and structurally impaired businesses that can undermine pure low-multiple strategies. The 13F Portfolio Composition across the firm's filing history reveals a diversified equity portfolio with meaningful allocations spanning technology, industrials, financial services, and healthcare sectors. This multi-sector representation distinguishes Stone House from narrow value strategies that concentrate exclusively in traditional value sectors such as financials and energy. The firm's willingness to own technology positions within a value framework suggests a sophisticated approach that recognizes how traditional sector boundaries between "growth" and "value" have evolved — many established technology companies now exhibit the cash flow characteristics, balance sheet strength, and valuation discipline that quality-value investors seek. The industrial and financial services allocations provide exposure to economically sensitive businesses that tend to benefit from cyclical expansion, earnings leverage during periods of economic growth, and attractive valuations relative to their normalized earnings power. Healthcare positions contribute defensive characteristics and exposure to innovation-driven growth opportunities in biotechnology, medical devices, and healthcare services — sectors where quality-value investors can find companies with durable competitive advantages trading at reasonable multiples relative to their long-term earnings trajectories. The Top 10 Holdings Concentration within the disclosed portfolio suggests a moderately concentrated approach that balances conviction positioning with diversification discipline. Stone House appears to maintain meaningful position sizes in its highest-confidence ideas — consistent with the value investing principle that outsized returns come from concentrated bets in deeply undervalued securities — while maintaining sufficient breadth to manage portfolio-level volatility and protect against the adverse impact of individual position impairment. This concentration level reflects the firm's active management philosophy, where differentiated security selection rather than broad market beta is expected to drive risk-adjusted outcomes. Portfolio turnover is generally low to moderate, consistent with a patient value philosophy that allows investment theses to develop over multi-year time horizons. Value-oriented strategies, by nature, require patience — the market's recognition of intrinsic value rarely occurs on a predictable timeline, and premature selling can sacrifice the very upside that careful fundamental analysis was designed to capture. This holding discipline also produces meaningful tax efficiency benefits for the firm's high-net-worth clients, as extended holding periods qualify positions for long-term capital gains treatment and defer unrealized appreciation.

Stone House Investment Management presents as a disciplined, Larchmont, New York-based registered investment advisor with a quality-value equity philosophy and a multi-year 13F filing history that provides meaningful analytical depth across several distinct market regimes. Under the leadership of founder Jeffrey Gelfand and partner Jonathan Siegel, the firm has built an investment practice centered on fundamental analysis, valuation discipline, and patient capital allocation — characteristics that define the quality-value investment tradition. Key characteristics observable from the public record include a diversified sector allocation spanning technology, industrials, financials, and healthcare; a quality-enhanced value selection process that emphasizes balance sheet strength, cash flow consistency, and competitive durability alongside attractive valuation; moderately concentrated conviction positioning balanced by sufficient diversification; and low to moderate portfolio turnover consistent with a patient, tax-efficient holding philosophy. The Sharpe Ratio derived from historical replication of the disclosed holdings offers a standardized efficiency metric for evaluating the firm's risk-adjusted compounding behavior. For a quality-value strategy, the Sharpe Ratio is particularly informative when measured across a complete style rotation — capturing both the periods of value underperformance (2017-2020) and the subsequent value recovery (2022 and beyond). A favorable full-cycle Sharpe Ratio would confirm that the value discipline, while requiring patience during growth-dominant regimes, ultimately delivers competitive risk-adjusted outcomes when evaluated over appropriate time horizons. The Sector Allocation History across quarterly filings can reveal whether Stone House has maintained a consistent cross-sector value approach or has rotated its sector emphasis in response to shifting valuation opportunities — for example, increasing technology exposure as valuations in certain tech sub-sectors became more attractive during the 2022 correction. These allocation dynamics illuminate the active component of the firm's investment process and its ability to identify relative value across sectors. The Annualized Return (CAGR) implied by the full filing history provides a comprehensive compounding metric that captures the cumulative effect of security selection, sector positioning, and style factor exposure over a multi-year period. For a value strategy, this metric gains particular significance when compared against both broad market benchmarks and value-specific indices, revealing whether Stone House's active selection has generated meaningful alpha above passive value factor exposure. A diagnostic question for further investigation: As the interest rate regime has structurally shifted from the near-zero environment that favored growth and duration assets to a potentially sustained higher-rate backdrop that historically benefits value and cash-flow-generative businesses, does Stone House's portfolio positioning suggest the firm has proactively leaned into this regime shift — increasing exposure to rate-beneficiary sectors and cash-flow-rich value opportunities — or has it maintained a consistent sector and style allocation, relying on its fundamental quality-value process to naturally benefit from the changed environment without explicit macro positioning?

The risk characteristics of Stone House Investment Management's disclosed portfolio reflect both the defensive properties and the cyclical sensitivities inherent to a quality-value equity strategy. Value-oriented approaches historically exhibit certain risk management advantages: lower starting valuations provide a margin of safety that can cushion downside during market corrections, while the emphasis on cash-flow-generative businesses reduces vulnerability to the multiple compression that devastates overvalued growth stocks during rising rate environments. The 2022 correction provided a compelling case study, as many value-oriented strategies substantially outperformed their growth counterparts during the most aggressive phase of Federal Reserve tightening. The Max Drawdown Depth across Stone House's multi-year filing history captures portfolio behavior during several distinct stress events. The March 2020 COVID-19 selloff was an indiscriminate liquidity event that impacted virtually all equity segments, though value and cyclical stocks — including industrials and financials — experienced particularly sharp declines as markets priced in an abrupt economic contraction. The firm's portfolio recovery trajectory from this trough provides insight into whether its quality-value screen identified businesses with sufficient financial resilience to participate in the subsequent rebound. The 2022 environment, conversely, was more favorable for value strategies, and examining whether Stone House captured this relative outperformance is informative for characterizing the portfolio's factor sensitivity. The Downside Capture Ratio relative to broad market benchmarks offers a critical metric for evaluating the portfolio's asymmetric risk characteristics. A well-constructed quality-value portfolio should theoretically capture less downside during market corrections — benefiting from the valuation margin of safety and fundamental quality filters — while participating in a reasonable share of upside during market advances. If sustained across multiple drawdown episodes, this favorable asymmetry compounds into meaningfully superior risk-adjusted capital trajectories over full market cycles. The portfolio's industrial and financial sector exposure introduces specific cyclical risks that merit monitoring. Industrial holdings are sensitive to manufacturing activity, capital expenditure cycles, and global trade dynamics, while financial positions carry exposure to credit quality, interest rate movements, and regulatory developments. During recessions or credit stress events, these cyclically sensitive sectors can experience amplified drawdowns relative to more defensive portfolio segments. The diversification into technology and healthcare provides a partial offset to this cyclical risk, creating a portfolio that balances economic sensitivity with secular growth and defensive characteristics. An important consideration for the firm's value approach is the potential for extended periods of style underperformance. The 2017-2020 period saw sustained growth factor dominance that tested the conviction of many value-oriented managers, as growth stocks dramatically outperformed value strategies for an extended period. Stone House's ability to maintain its investment discipline through this challenging relative performance environment — rather than style-drifting toward growth — speaks to the firmness of its investment philosophy and the strength of its client relationships.