Jim Cramer's Long-Term Holdings Show Disappointing Returns

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 |  Includes: AA, AAPL, APA, AXP, CMI, DD, DE, EMC, ESRX, ESV, FCX, IBM, JCI, JNPR, KO, T
by: Insider Monkey

Jim Cramer is maybe the most popular financial TV personality right now. More than two hundred thousand people watch Mad Money daily and his buy and sell recommendations can move the stocks significantly. Does it make sense to invest in Cramer's top stock picks? Cramer's stock picks actually outperformed the market on the average until 2010. However, we couldn't find any information about his most recent performance. So, we wanted to take a look at stocks that Jim Cramer has been consistently bullish about.

One of the places to look for Cramer’s bullish stock picks is his charitable trust’s portfolio. In this article, we are going to focus on his relatively long-term stock picks. Cramer usually has about 30-35 stocks in his charitable trust's portfolio. Below we compiled a list of stocks that are in Cramer’s trust in June, September, and today. Around half of the stocks in his portfolio are relatively long-term positions.

Ticker

Company

29-Jun

15-Sep

19-Dec

AA

Alcoa Inc.

5500

5500

5700

EMC

EMC Corp.

4000

4000

4000

JNPR

Juniper Networks

2500

2500

2500

ESV

Ensco PLC

2100

2100

2100

KO

Coca-Cola Company

1800

1800

1800

AXP

American Express

2700

2700

1600

ESRX

Express Scripts, Inc.

1300

1300

1300

JCI

Johnson Controls, Inc.

1000

1000

1000

APA

Apache Corp.

1100

1100

800

CMI

Cummins, Inc.

800

800

800

DE

Deere & Co.

800

800

800

FCX

Freeport McMoRan

800

800

800

DD

DuPont & Co.

500

500

500

T

AT&T

500

500

500

IBM

IBM Corp.

400

400

400

AAPL

Apple Inc.

200

200

200

Click to enlarge

As of December 19, Cramer’s charitable trust owns 5700 shares of Alcoa. It also owned 5500 shares of Alcoa stock in September and June. Alcoa has a market cap of $9.1B and a P/E ratio of 9.07. The stock lost 44.10% since the beginning of this year. John Paulson's Paulson & Co invested $281 million in Alcoa at the end of September.

EMC Corp (NYSE:EMC) is another long-term holding of Cramer’s charitable trust. The trust owned 4000 shares of EMC in December, September, and June. EMC has a market cap of $44.8B and a P/E ratio of 21.73. Since the beginning of this year, it lost 4.15%. Ken Fisher is also bullish about EMC. His Fisher Asset Management invested $461 million in EMC at the end of the third quarter.

The charitable trust has also been holding Juniper Networks (NYSE:JNPR) for at least the past 6 months. It reported owning 2500 shares of the stock in December, September and June. Juniper has a market cap of $9.5B and a P/E ratio of 19.07. The stock lost 50.92% so far this year. At the end of September, Ken Griffin’s Citadel Investment Group disclosed owning $71 million of Juniper stocks. Citadel boosted its stakes in the stock by over 400% during the third quarter.

One of the mega-cap stocks that are in Cramer’s trust for the long-term is the Coca-Cola Company (NYSE:KO). In December, September and June, the charitable trust had 1800 shares of Coca-Cola. Coca-Cola has a market cap of $153B and a P/E ratio of 12.41. It has returned 5.40% since the beginning of this year. Billionaire Warren Buffett is also bullish about Coca-Cola. As of September 30, Berkshire Hathaway reported owning $13.5 billion in Coca-Cola shares.

Other large-cap stocks that are in the trust in June, September, and today are Apple Inc (NASDAQ:AAPL), IBM Corp (NYSE:IBM), AT&T (NYSE:T), American Express (NYSE:AXP), DuPont & Co (NYSE:DD), Freeport McMoRan (NYSE:FCX), Apache Corp (NYSE:APA), and Deere & Co (NYSE:DE). We like Cramer. He is not secretive about his investments. He not only shares his opinions with the public on his TV show, but reveals the portfolio holdings of his charitable trust frequently on his website.

Unfortunately, the 16 stocks that have been in his portfolio consistently during the past 6 months lost 17% and underperformed the S&P 500 index by 9 percentage points. These stocks also lost 12.4% since the beginning of 2011, underperforming the SPY by 10 percentage points. We don’t think it is very likely that Cramer beat the market in 2011. This is probably the reason why we don’t see his 2011 returns advertised anywhere.

Disclosure: I am long T.