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Navellier & Associates was founded in 1980 by Louis G. Navellier. Based in Reno, Nevada, the firm focuses on growth investments. Navellier is the editor of four investment newsletters, Blue Chip Growth, Emerging Growth, Global Growth and Quantum Growth. Louis Navellier also authored a Business Week best seller, "The Little Book That Makes You Rich."

Louis Navellier uses a system that grades stocks. According to his calculations, for the past 13 years his “A” graded stocks returned 1267.9% vs. the S&P 500 (NYSEARCA:SPY)’s 61% (we haven’t verified this claim). His stock-picking formula consists of two factors: fundamentals and buying pressures. He thinks fast-growing firms are healthy, thriving and well managed. He uses technical indicators to measure buying pressures to time entry points for these healthy, growing stocks.

We summarized the performance of Navellier’s 30 largest new positions:

CompanyName

Ticker

Value (x1000)

Return

CATERPILLAR INC

CAT

46103

-9.8%

ONCHO RESOURCES INC

CXO

45396

-20.1%

ROCKWELL AUTOMATION INC

ROK

44030

-14.5%

MARATHON OIL CORP

MRO

44024

-6.6%

CHEVRON CORP NEW

CVX

43465

-8.2%

DOLLAR TREE INC

DLTR

43391

17.5%

SILVER WHEATON CORP

SLW

43247

-26.7%

YUM BRANDS INC

YUM

42791

5.3%

CONOCOPHILLIPS

COP

41885

-9.7%

ADVANCE AUTO PARTS INC

AAP

41859

-11.5%

PIONEER NATURAL RESOURCES CO

PXD

41644

-17.2%

ILLUMINA INC

ILMN

41268

4.2%

HERSHEY CO

HSY

40943

3.6%

COCA COLA CO

KO

38507

-1.4%

SECTOR SPDR TRUST

XLV

10730

5.3%

Navellier’s largest new stock purchases lost 6.7% during the past three months, vs. a loss of 3.9% for the SPY. Navellier’s top picks managed to outperform the SPY during the last quarter of 2010 by three percentage points. His largest positions also outperform the SPY by 4 percentage points during the first 4 months of 2011 (See details here). Unfortunately his performance lagged the market since the end of first quarter.

Navellier’s best performing new purchase was Dollar Tree (NASDAQ:DLTR). Julian Robertson’s Tiger cubs John Griffin and Lee Ainslie had the largest position in DLTR at the end of first quarter among the 300+ hedge funds we track (See John Griffin’s other bullish bets here). Yum Brands (NYSE:YUM) is another Navellier’s profitable picks. Another Tiger cub, Stephen Mandel, had more than $500 Million in YUM at the end of March. Andreas Halvorsen, also a Tiger cub, had nearly $300 Million in YUM.

Navellier’s worst performing new stock pick was Silver Wheaton (NYSE:SLW). SLW was trading above $47 per share in early April. Unfortunately the stock collapsed following the 30% decline in silver from its peak in April. His energy bets didn’t perform well either. Oncho Resources lost 20% and Pioneer Natural Resources dropped 17% since the end of March. Navellier’s largest new purchase was Caterpillar (NYSE:CAT). Caterpillar is a levered play on global growth and the stock lost nearly 10% as global growth expectations were curbed. Ken Fisher had nearly $800 Million in CAT at the end of first quarter (See Ken Fisher’s favorite stocks).

It is clear that Navellier is bullish about the global growth and took positions in companies that will benefit the most from continued global growth. These stocks will outperform the broader market indices if what we are experiencing right now is a temporary soft patch.

Source: Louis Navellier's New Stock Picks