N-Q 1 nq0220.htm STARBOARD INVESTMENT TRUST - CROW POINT SMALL-CAP GROWTH FUND


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22298


Starboard Investment Trust
(Exact name of registrant as specified in charter)


116 South Franklin Street, Rocky Mount, North Carolina 27804
(Address of principal executive offices) (Zip code)


Paracorp Inc.
2140 South Dupont Hwy., Camden, DE  19934
 (Name and address of agent for service)


Registrant's telephone number, including area code: 252-972-9922


Date of fiscal year end: May 31


Date of reporting period: February 29, 2020






ITEM 1.  SCHEDULE OF INVESTMENTS

Crow Point Small-Cap Growth Fund
              
                     
Schedule of Investments
              
(Unaudited)
                
                     
As of February 29, 2020
              
               

Shares
  

Value (Note 1)
                     
COMMON STOCKS - 89.02%
              
                     
 
Communication Services - 6.29%
              
   
Nexstar Media Group, Inc.
        
           4,707
$
         541,211
   
The EW Scripps Co.
        
         19,000
  
         226,100
                   
         767,311
 
Consumer Discretionary - 5.28%
              
 
*
Crocs, Inc.
          
           5,000
  
         133,716
 
*
Five Below, Inc.
          
           1,500
  
         145,425
 
*
Installed Building Products, Inc.
        
           2,900
  
         191,545
 
*
TopBuild Corp.
          
           1,717
  
         173,417
                   
         644,103
 
Financials - 7.87%
                
   
Allegiance Bancshares, Inc.
        
           2,894
  
          95,994
   
Ares Capital Corp.
          
         13,114
  
         225,430
 
*
eHealth, Inc.
          
           2,400
  
         281,640
   
Starwood Property Trust, Inc.
        
         10,000
  
         221,800
   
Veritex Holdings, Inc.
        
           5,633
  
         135,586
                   
         960,450
 
Health Care - 32.91%
              
 
*
Aerie Pharmaceuticals, Inc.
        
           7,370
  
         128,975
 
*
Alnylam Pharmaceuticals, Inc.
        
           2,000
  
         235,320
 
*
Amarin Corp. PLC
          
         23,011
  
         337,571
 
*
Avid Bioservices, Inc.
        
         40,000
  
         252,000
 
*
Baudax Bio, Inc.
          
         41,398
  
         288,958
 
*
ChemoCentryx, Inc.
        
           2,300
  
         102,925
 
*
Dynavax Technologies Corp.
        
         17,717
  
          69,894
 
*
Halozyme Therapeutics, Inc.
        
           7,700
  
         150,689
 
*
Intercept Pharmaceuticals, Inc.
        
           2,000
  
         183,880
   
Invacare Corp.
          
         10,099
  
          76,550
 
*
Mainstay Medical, Inc. - Ireland (a)
        
         15,231
  
          50,395
 
*
Natera, Inc.
          
           4,000
  
         151,620
 
*
Novocure Ltd.
          
           2,800
  
         203,700
 
*
PDL BioPharma, Inc.
        
         46,000
  
         156,400
 
*
PolarityTE, Inc.
          
         12,373
  
          16,827
 
*
R1 RCM, Inc.
          
         44,400
  
         545,232
 
*
Recro Pharma, Inc.
        
         32,097
  
         460,271
 
*
Silk Road Medical, Inc.
        
           4,393
  
         175,061
 
*
Tandem Diabetes Care, Inc.
        
           2,400
  
         179,184
 
*
Teladoc Health, Inc.
        
           2,000
  
         249,920
                   
      4,015,372
                     
                     
                     
                   
 (Continued)

Crow Point Small-Cap Growth Fund
              
                     
Schedule of Investments - Continued
              
(Unaudited)
                
                     
As of February 29, 2020
              
       


 

Shares
  

Value (Note 1)
                     
COMMON STOCKS - CONTINUED
              
                     
 
Industrials - 10.79%
                
 
*
Aerojet Rocketdyne Holdings, Inc.
        
           4,700
$
         231,616
   
CRA International, Inc.
        
           5,000
  
         232,550
 
*
IAA, Inc.
          
           2,900
  
         123,888
   
Interface, Inc.
          
         16,800
  
         245,112
 
*
Limbach Holdings, Inc
        
         12,900
  
          53,535
 
*
Mercury Systems, Inc.
        
           3,056
  
         224,494
 
*
RBC Bearings, Inc.
        
           1,200
  
         205,428
                   
      1,316,623
 
Information Technology - 23.00%
              
 
*
Akoustis Technologies, Inc.
        
         14,500
  
         104,980
 
*
CEVA, Inc.
          
           5,700
  
         161,937
 
*
CyberArk Software Ltd.
        
           1,800
  
         188,460
 
*
HubSpot, Inc.
          
           1,700
  
         305,065
 
*
Limelight Networks, Inc.
        
         50,900
  
         256,790
 
*
Lumentum Holdings, Inc.
        
           3,800
  
         295,716
 
*
New Relic, Inc.
          
           2,100
  
         118,146
 
*
OSI Systems, Inc.
          
           2,058
  
         167,254
 
*
Rapid7, Inc.
          
           7,000
  
         324,100
 
*
RingCentral, Inc.
          
           1,600
  
         377,200
 
*
Rosetta Stone, Inc.
        
         19,000
  
         328,130
 
*
ShotSpotter, Inc.
          
           5,000
  
         178,000
                   
      2,805,778
 
Utilities - 2.88%
                
   
Hawaiian Electric Industries, Inc.
        
           2,500
  
         107,100
   
NextEra Energy, Inc.
        
              500
  
         126,380
   
PNM Resources, Inc.
        
           2,500
  
         117,700
                   
         351,180
                     
   
Total Common Stocks (Cost $10,994,426)
          
    10,860,817
                     
EXCHANGE-TRADED PRODUCTS - 4.88%
            
                     
 
Growth - 4.88%
                
   
iShares Russell 2000 Growth ETF
        
           1,061
  
         209,049
   
Vanguard Small-Cap Growth ETF
        
           2,094
  
         386,741
                     
   
Total Exchange-Traded Products (Cost $664,211)
          
         595,790
                     
SHORT-TERM INVESTMENT - 8.54%
              
 
  §
Money Market Fiduciary Portfolio, 0.25%
      
     1,041,216
  
      1,041,216
                     
   
Total Short-Term Investment (Cost $1,041,216)
          
      1,041,216
                     
                   
 (Continued)

Crow Point Small-Cap Growth Fund
              
                     
Schedule of Investments - Continued
              
(Unaudited)
                
                     
As of February 29, 2020
              
                   

Value (Note 1)
                     
Total Value of Investments (Cost $12,699,853)(a) - 102.44%
    
$
    12,497,823
                     
Liabilities in Excess of Other Assets  - (2.44)%
          
        (298,188)
                     
 
Net Assets - 100%
            
$
    12,199,635
                     
§
Represents 7 day effective yield
              
*
Non-income producing investment
              
(a)
Foreign security
                
                     
The following acronym or abbreviation is used in this portfolio:
        
 
PLC - Public Limited Company
              
                     
(a)
Aggregate cost for financial reporting and federal income tax purposes is the same.  Unrealized appreciation (depreciation) of investments for financial reporting and federal income tax purposes is as follows:
 
                     
 
Aggregate Gross Unrealized Appreciation
        
 $
         874,871
 
Aggregate Gross Unrealized Depreciation
          
     (1,076,901)
                     
   
Net Unrealized Appreciation
          
$
        (202,030)
                     
                     
   
Summary of Investments
% of Net
            
   
by Sector
  
Assets
  
 Value
        
   
Common Stocks:
                
   
  Communication Services
6.29%
 $
        767,311
        
   
  Consumer Discretionary
5.28%
  
        644,103
        
   
  Financials
  
7.87%
  
        960,450
        
   
  Health Care
  
32.91%
  
     4,015,372
        
   
  Industrials
  
10.79%
  
     1,316,623
        
   
  Information Technology
23.00%
  
     2,805,778
        
   
  Utilities
  
2.88%
  
        351,180
        
   
Exchange-Traded Products:
              
   
  Growth
  
4.88%
  
        595,790
        
   
Short-Term Investment
8.54%
  
     1,041,216
        
   
Liabilities in Excess of Other Assets
-2.44%
  
       (298,188)
        
   
Total Net Assets
  
100.00%
 $
   12,199,635
        
                     
                     
                     
                     
                     
                     
                     
                     
                   
 (Continued)

Crow Point Small-Cap Growth Fund
              
                     
Schedule of Investments - Continued
              
(Unaudited)
                
                     
As of February 29, 2020
              
                     
Note 1 - Investment Valuation
              
                     
The Crow Point Small-Cap Growth Fund (the "Fund") records its investments in securities at fair value. Under generally accepted accounting principles ("GAAP"), fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date.
In determining fair value, the Fund uses various valuation approaches. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:
 
Level 1:    quoted prices in active markets for identical investments
Level 2:    other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)
Level 3:    significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
 
The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed.
 
Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement.
 
Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Fund's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Fund uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.
Securities listed on an exchange or quoted on a national market system are valued at the last sales price as of 4:00 p.m. Eastern Time.  Securities traded in the NASDAQ over-the-counter market are generally valued at the NASDAQ Official Closing Price.  Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the most recent bid price. Securities and assets for which representative market quotations are not readily available or which cannot be accurately valued using the Fund’s normal pricing procedures are valued at fair value as determined in good faith under policies approved by the Trustees.
                   
 (Continued)

Crow Point Small-Cap Growth Fund
              
                     
Schedule of Investments - Continued
              
(Unaudited)
                
                     
As of February 29, 2020
              
                     
Note 1 - Investment Valuation - Continued
              
                     
Fair value pricing  may be used, for  example,  in situations  where (i) a portfolio security is so thinly traded that there have been no transactions for that security over an extended period of time; (ii) the exchange on which the portfolio security is principally traded closes early; or (iii) trading of the portfolio security is halted during the day and does not resume prior to the Fund’s net asset value calculation.  A portfolio security’s “fair value” price may differ from the price next available for that portfolio security using the Fund’s normal pricing procedures.  Instruments with maturities of 60 days or less are valued at amortized cost, which approximates market value.
The Fund has adopted ASC Topic 820, Fair Value Measurements.  ASC Topic 820 defines fair value, establishes a frame work for measuring fair value and expands disclosure about fair value measurements.The Fund has adopted FASB guidance updating ASC Topic 820 titled, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability have Significantly Decreased and Identifying Transactions that are not Orderly” which provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction that is not orderly, and how that information must be incorporated into fair value measurement.  The guidance emphasizes that even if there has been a significant decrease in volume and level of activity for an asset or liability and regardless of the valuation techniques used, the objective of a fair value measurement remains the same.
The following table summarizes the classification of the Fund's investments by the above fair value hierarchy levels as of February 29, 2020:
                     
Assets
  
Total
  
Level 1
  
Level 2
  
 Level 3
Common Stocks
  
$
  10,860,817  
$
  10,860,817   $
 -
$ -
Exchange-Traded Products
 595,790.00
  
   595,790.00
   -
-
Short-Term Investment
  
   1,041,216
  
     1,041,216
   -
   -
Total Assets
  
$
 12,497,823  
$
  12,497,823   $
 -
$
 -
                     

ITEM 2.  CONTROLS AND PROCEDURES
(a)
The President and Principal Executive Officer and Treasurer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)) under the Investment Company Act of 1940, are effective based on their evaluation of these disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing of this report.
(b)
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.



ITEM 3.  EXHIBITS

Certifications of the President and Principal Executive Officer and Treasurer and Principal Financial Officer as required pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are filed with this Form N-Q as exhibits.







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
Starboard Investment Trust
     
     
   
 /s/ Katherine M. Honey
 
By:
 
Katherine M. Honey
President and Principal Executive Officer
     
 
Date:
April 21, 2020
     



Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


     
   
  /s/ Katherine M. Honey
 
By:
 
Katherine M. Honey
President and Principal Executive Officer
     
 
Date:
April 21, 2020
     
     
   
 /s/ Ashley H. Lanham
 
By:
Ashley H. Lanham
Treasurer and Principal Financial Officer
     
 
Date:
April 21, 2020