MoneySense should start a mutual fund

[Stunt]

If you are not familiar with MoneySense, don't worry...it's a magazine published in Canada for the mid to upper class and focuses on investing, career, retirement, and the like.

For the past 2 years they have been doing analysis on 200 of Canada's largest companies, and in the most recent year they have done the same analysis on 1000 American companies. They rank the companies from A to F on a valuation basis and A to F on a growth basis. The result is a huge melting pot of various valuations and growth opportunities. What they then did was took all the A ranking value stocks (22 in 2006, 12 in 2005) and all the A ranking growth stocks (19 in 2006, 16 in 2005)...combined them to produce A-A and A-B stocks.

Their 2005 picks (A-A, A-B's) after one full year produced an astounding 58% BEFORE dividends. Those same stocks are currently up 91% based on straight up stock price (not dividends).

Some may argue these results are from a Canadian economy with tons of oil and materials companies...I would have assumed this as well. But that growth was had by almost no oil and materials companies!

I have included all the A-A. A-B and B-B's in Canada for the last year and their AVERAGE growth. (their 2006 picks are up over 26% this year already!) For you Americans I have included the A-A picks from the "MoneySense US top 1000" for 2006. (mixed bag, but there are 9 more months for some of these to perform)

Enjoy!!

CAN2006: (A-A, A-B)
E-L Financial
Kingsway Financial
Astral Media
Aur Resources
CHUM
Enerflex Systems
Manitoba Telecom
Russel Metals 'A'
Samuel Manu-Tech
Average = 17%

CAN2006: (B-B)
Cameco
Canfor
Cinram International
Gerdau Ameristeel
Inco
Industrial-Alliance Ins & Fin Serv
Intrawest
Power Corporation Of Canada
Sherritt International
Sino Forest
Average = 36%

CAN2005: (A-A, A-B)
Enerflex Systems
IPSCO
Canada Bread Company
CHUM
Norbord
Taiga Forest Products
Average = 91%

CAN2005: (B-B)
CGI Group
Cinram International
Dofasco
Industrial Alliance Ins & Fin Serv
Intier Automotive
Martinrea International
Stratos Global
TELUS
Wajax
Average = 58%

US2006: (A-A)
Phelps Dodge
WPS Resources
Commerce Group
Modine Manufacturing
M.D.C. Holdings
Standard Pacific
Seaboard
Average = 1%

 

[middlehead]

There are more than 200 companies in Canada?

 

[Stunt]

Originally posted by: middlehead
There are more than 200 companies in Canada?

Yes, here is a list of Canada's 1000 largest publicly traded companies with the largest having $469,521,000,000 in assets...about 12 times the size of Coca-Cola or 6 times the size of Microsoft

 

[everman]

A short 2 year history is nothing to go on. What's the history of the portfolio managers? How are they doing the analysis?
I'd start a hedge fund vs mutual fund anyways, less regulation

 

[Stunt]

That's the thing, they are not portfolio managers but people who work for this business magazine in Canada. They have developed this strategy 2 years ago and they have had absolutely stellar results. Don't get me wrong, I do know it is a short time period but they have beat anything i've seen around here. Especially with diversified stocks...not putting it all on energy and materials.