Piggybacking: 2Q07 results

So, a little hand-waving shows our piggyback portfolio’s performance: 5.63% for the quarter, assuming equal weighting for each holding in the portfolio. For some perspective, 2Q07 returns for relevant benchmarks:
S&P500 index: 5.68%
Vanguard Total Stock Market ETF (AMEX:VTI): 5.53% 

 

Company

Ticker Symbol 5-15-07 6-29-07 return
HYPERCOM NYSE HYC 5.58 5.91 6%
NORFOLK SOUTHERN NYSE NSC 55.87 52.57 -6%
WESTWOOD ONE NYSE WON 7.15 7.19 1%
PROQUEST COMPANY OTC PQES.PK 8.79 9.54 9%
OMNIVISION TECHNOLOGIES NASDAQ OVTI 14.17 18.11 28%
MDS NYSE MDS 22 22.67 3%
ARIAD PHARMACEUTICALS NASDAQ ARIA 5.06 5.49 8%
PLATO LEARNING NASDAQ TUTR 4.21 4.60 9%
MEADE INSTRUMENTS NASDAQ MEAD 2.25 2.21 -2%
SYNOVUS FINL NYSE SNV 32.09 30.70 -4%
ACADIA PHARMACEUTICALS NASDAQ ACAD 12.87 13.67 6%
COLEMAN CABLE NASDAQ CCIX 24.1 25.86 7%
ATP OIL & GAS NASDAQ ATPG 42.29 48.64 15%
TEMPLE INLAND NYSE TIN 62.31 61.53 -1%

Remember, one data point does not a valid study make. Join us next quarter as we journey to extract our second data point. 

The way this will work: we will continue to move forward with the current portfolio, making minor changes. The first is that as a rule of thumb we will sell any holding that produces a return at or above 25% at any point during the quarter (this means that moving forward we will toss OmniVision, NASDAQ:OVTI). As having hypothetically sold the security our portfolio’s return will be calculated as having locked in the 28%+ return for that holding. 

Second, any holding that the hedge funds ditched –as per the 2Q07 13F– will be removed from the mock portfolio and instead replaced with a new holding picked using the same methodology as we used in constructing the original portfolio (i.e. random number generator, etc…) 

Third, we kind of have a thing for backing somewhat involved (debatable) philosophical theses with our investing dollars (requires serious hedging and sometimes hurts –we’re just trying to kill the philosopher inside), and for this reason have decided to more closely follow, or explore the holdings of a few global macro funds. Consequently, we will track a second mock portfolio (same rules apply). 

Note: we are not recommending this as an investment strategy. We would much rather have you buy art.

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