A Merry Month of May for PowerPicks
By Ken Shea and Robert Gold
The -- representing S&P analysts' top picks for the year -- outperformed its benchmark, the S&P 500 index, in May. For the month, the portfolio posted gain of 2.6%, vs. a rise of 1.4% for the "500", both including dividends.
The portfolio was led by strong gains in Nextel Partners, Reliant Resources, and Analog Devices, which more than offset weakness in issues such as Caremark Rx and Corinthian Colleges.
Year to date through May 28, the portfolio has beaten the "500" in 4 of 5 months, and posted a superior return of 5.6%, vs. 1.5% for the benchmark index, both including dividends. During that time, 25 portfolio stocks beat the S&P 500, while 15 did not.
About the S&P PowerPicks 2004 Portfolio
The portfolio represents the collective "best ideas" of the Standard & Poor's equity research staff.
Each of the most senior 40 industry analysts on S&P's equity research staff has chosen one of the stocks they follow as the best-positioned for superior growth. The S&P PowerPicks 2004 Portfolio is diversified across all the 10 S&P economic sectors comprising the S&P 500 index.
The portfolio is a "frozen" one, meaning it will undergo no changes throughout the entire year. The objective of the portfolio is to exceed the total return (capital appreciation plus dividends paid) generated by the S&P 500 index during the next 12 months.
For more on the S&P PowerPicks 2004 portfolio, please visit http://www.businessweek.com/investor/content/dec2003/pi20031226_5517_pi071.htm
Shea is director of global equity research, and Gold a senior portfolio group analyst, for Standard & Poor's Equity Research