July 29th, 2006
The Watch List This Week (July 23-29, 2006)
The Watch List has consistently performed slightly better than the small and mid-cap benchmarks that are the best comparison for it. Of course, the limited history (the small/midcap benchmarks have generally been falling) may simply indicate that it is a more conservative/defensive portfolio. The true test will be its relative performance in a market rally.Interestingly, large caps are up month to date. Would never have guessed it with the general gloom and doom we’ve been hearing, but it is what it is.
We will also be tracking the performance of our personal portfolio going forward. Ideally, what we would want to see is the Watch List beating the benchmarks and our portfolio beating the Watch List. That scenario would mean that our process for narrowing down the 10,000 stock universe to 100 names is adding value, and also that we have skill at picking from among the available names.
Given that the performance of the Watch List seems clearly tied to the performance of small/mid-cap names, we are considering creating a separate large-cap Watch List. If you have any thoughts on this or how we should present this type of information going forward (more stocks, fewer stocks, separate lists or all together) please let us know in the comments.
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