Friday, October 21, 2011

"The Best Stock Picker the World has Never Heard Of" Still Beating the Market (DIA; SPY)

We first looked at "Randy" McDuff in 2008. Here's the July 2011 update:
The Oracle of Manitoba: "the best stock picker the world has never heard of"
HUGE Caveat below.
Back in June 2008 we linked to a Forbes profile:

"Discipline" and "patience" are probably the two most valuable words in value investing. It stands to reason, then, that few places would serve as better incubators for a value investor than The Pas, in Manitoba. Close to polar bear country, where Hudson Bay winds chill the air to 40 degrees below zero and the wait for spring lasts eight months, The Pas is the hometown of Randolph McDuff, a stock picker with an astounding record....
And here is his latest performance, via marketocracy:

RMG1 Recent Returns vs S&P500 (as of 2011-10-21)
ReturnsRMG1S&P500RMG1 vs S&P500
Last Week-1.27%1.00%-2.27%
Last Month-1.52%1.29%-2.81%
Last 3 Months-10.37%-9.13%-1.24%
Last 6 Months-6.94%-8.14%1.21%
Last Year6.74%5.28%1.46%
Last 2 Years22.95%16.02%6.93%
Last 3 Years50.98%31.90%19.08%
Last 5 Years54.33%-1.15%55.48%
Since Inception517.81%0.42%517.39%

RMG1 5 Biggest Holdings (on 2011-10-21)
Symbol Name Price Shares Value % Fund
MA Mastercard Inc 325.68 4,640 $1,511,155 24.45%
NVO NOVO-NORDISK A/S ADR 98.65 10,700 $1,055,555 17.08%
CHL CHINA MOBILE(HONG KONG) ADS 48.16 9,093 $437,919 7.09%
KSU Kansas City Southern 57.33 7,500 $429,975 6.96%
CBD COMPANHIA BRASILEIRA ADS 37.37 10,500 $392,385 6.35%


$3,826,989 61.92%

Considering the action of the last week/month/quarter/year/decade that is not a bad record.

Here is the month by month report card.
After a 9.49% drawdown in September the portfolio is up 5.58% October month-to-date.

Eat your heart out John Paulson.