Epiphany Investing

Searching Out the Optimal Portfolio of “Revelation” Stocks

Broad Market Rally Ahead of Election Results, STPortfolio Adds More Alpha

Posted on | November 4, 2008 Time: 9:56 pm |

Get Out and Vote!

Get Out and Vote!

What an impressive day for the U.S. markets. Not only were they up on broad-based buying, there wasn’t much volatility going into the close. Late-day shenanigans in the past month have signaled of an overabundance of redemptions from both the hedgies and mutual funds. But today was relatively smooth, albeit on lower volumes. You can check out the Heat Map for the S&P 500 here, and below is the sector performance histogram for the day; once again Basic Materials led the way:

Performance Update - Secular Trends Model Portfolio

The Secular Trends Portfolio couldn’t have asked for a better day; check out the performance of the Top 5 Holdings:

1 - Caterpillar (10.5% of portfolio)  UP 8.3%

2 - Potash Corp (9%) UP 10.72%

3 - Petrobras (6.7%) UP 16%

4 - Freeport-McMoRan (5.8%) UP 14.2%

5 - Costco Wholesale (6%) UP 3%

The net asset value of the model portfolio was up 5.7% today, scooping up some more alpha over the 4.1% return of the S&P 500. My convictions were put to the test two weeks ago when basic materials and industrials were crumbling. But each holding has a specific long-term thesis. Each of the 22 stocks in the model portfolio can become a “revelation” stock, and not just because of fundamentals, but because of strong management, corporate cultures that promote the right long-term strategy, and the usefulness of their products and services to the rest of the world.

You can read more about the investment philosophy, or look over the portfolio positions here.

Investment Thesis & Recent News for the Top 5 Holdings:

Caterpillar

Potash Corp

Petrobras

Freeport-McMoRan

Costco Wholesale

Editor’s Note: As always, I appreciate your feedback and comments. If there’s something you’d like to see or hear about, drop me a line. I’m still trying to get my 2.0 sea legs, and in that regard I’m constantly trying to learn more about site design, layout options, and my overall ability to engage with you, the readers.

Ryan Barnes

More on this topic (What's this?)
ROSENBERG: THE MARKET LOOKS TOPPY (THE PRAGMATIC CAPITALIST, 3/3/10)
The Dividend Stock Recovery: Get Ready for a High-Yield Bonanza (Investment U, 2/22/10)
A Comprehensive Look At Investor Sentiment (The Technical Take, 3/4/10)
Read more on S&P 500 (SPX) at Wikinvest
  • Share/Bookmark
Category: Basic Materials, Broad Markets, Industrials, Performance, Sector Study, Secular Trends Portfolio
Tags: > > > > > > >

Comments