A Midsummer Slump for S&P PowerPicks
By Ken Shea and Robert Gold
The -- representing S&P analysts' top picks for the year -- lagged its benchmark, the S&P 500 index, by a wide margin in July. For the month, the portfolio posted a loss of 7.8%, vs. a decline of 3.3% for the "500", both including dividends.
The portfolio's best performers in July included Indymac Bancorp (NDY ), up 5.1%, Exxon Mobil (XOM ), up 4.3%, ENSCO (ESV ), up 3.5%, Constellation Brands (STZ ), up 2.0%, and and Evergreen Resources (EVG ), up 1.3%.
Unfortunately, gains in those issues were not enough to offset weakness in Intrado (TRDO ), down 34.7% on the month, America West (AWA , down 33.0%, Mylan Labs (MYL ), down 26.8%, Corinthian Colleges (COCO ), down 24.3%, and Flextronics (FLEX ), down 21.2%.
Year to date through July 31, the portfolio has beaten the "500" in 4 of 7 months, but has trailed its benchmark slightly, down 1.0% on a total return basis, while the "500" was virtually unchanged.
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