Two months ago, we reported on Barrington's 2011 picks here.
Barrington may not be the best known of the stock recommendation firms, but its Best Ideas List outperformed key benchmarks in 2010, when it was first started. Since inception on January 1, 2010, Barrington's best stock picks have risen 44.5%, outpacing gains on the S&P 500 (18.9%) and the Russell 2000 (34.9%). That success continued in the first quarter, as the Best Ideas portfolio was up 6.8%, excluding dividends, better than the 5.4% rise on the S&P 500 but below the performance of the Russell 2000 (up 7.6%), on the same basis.
When we reported the returns in the middle of May, the summary results were:
April Performance
| Name | Last 1 Year | Last 3 Years | Last 5 Years |
| P Barrington Updates Best Stock Picks for 2011 | 30% | ||
| VFINX (Vanguard (S&P 500) Index) | 10% | 2% | 2% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 9% | 4% | 5% |
When we come to examine this nearly two months later, we see:
June Performance
| Name | Last 1 Year | Last 3 Years | Last 5 Years |
| P Barrington Updates Best Stock Picks for 2011 | 31% | ||
| VFINX (Vanguard (S&P 500) Index) | 15% | 0% | 2% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 12% | 4% | 5% |
We have been using an ETF portfolio focused on dividends as a benchmark to compare the returns.
Fund in this portfolio
PRGX (PRG-Schultz International, Inc)
LOPE (Grand Canyon Education, Inc.)
MOD (Modine Mfg)
CPTS (Conceptus, Inc.)
SIRI (Sirius XM Radio Inc.)
INWK (InnerWorkings, Inc.)
CAB (Cabela's Inc.)
ECHO (Echo Global Logistics, Inc.)
BPI (Bridgepoint Education, Inc.)
IMAX (IMAX Corporation (USA))
PRTS (U.S. Auto Parts Network, Inc.)
ATRC (AtriCure, Inc.)
SIRO (Sirona Dental Systems, Inc.)
NAV (Navistar International Corp.)
CPRT (Copart Inc)
We will compare the recent returns with this portfolio
| Asset | Fund in this portfolio |
|---|---|
| REAL ESTATE | ICF (iShares Cohen & Steers Realty Majors) |
| CASH | CASH |
| FIXED INCOME | TIP (iShares Barclays TIPS Bond) |
| Emerging Market | VWO (Vanguard Emerging Markets Stock ETF) |
| US EQUITY | DVY (iShares Dow Jones Select Dividend Index) |
| US EQUITY | VIG(Vanguard Dividend Appreciation ETF) |
| INTERNATIONAL EQUITY | IDV (iShares Dow Jones Intl Select Div Idx) |
| High Yield Bond | HYG (iShares iBoxx $ High Yield Corporate Bd) |
| INTERNATIONAL BONDS | RMB (iShares JPMorgan USD Emerg Markets Bond) |
P Barrington Updates Best Stock Picks for 2011 -- Total of $10K invested equally in each stock
Retirement Income ETFs Tactical Asset Allocation Moderate -- Above funds using TAA (40% fixed income, 30% for each of the top two asset classes)
Retirement Income ETFs Strategic Asset Allocation Moderate -- Above funds using SAA (40% fixed income, 12% for each of the five asset classes -- funds selected based on price momentum)
The goal is to track the behavior of the portfolios and compare them as the year progresses and as we encounter the slings and arrows of outrageous fortune that is the day-to-day reality.
| Portfolio/Fund Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|
| P Barrington Updates Best Stock Picks for 2011 | 31% | 172% | ||||
| Retirement Income ETFs Strategic Asset Allocation Moderate | 13% | 162% | 3% | 17% | 5% | 25% |
| Retirement Income ETFs Tactical Asset Allocation Moderate | 8% | 127% | 10% | 79% | 11% | 80% |
We have previously noted that this is a portfolio with a short history, as some of the equities are new. This is why it is critical to keep tabs on the performance.
Three Month Chart (Click to enlarge)
We can see that the performance was strong in May but it has tumbled in June. It is still showing good returns for the year but it will be important to track this over the next few months to see whether it rebounds or continues to sink. In any case, the more steady ETF portfolio doesn't look as bad as it did a month ago.
Disclosure: We do not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical. I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
