2007 Contrarian Portfolio: Performance Update
We still predict strong returns for this set of beleaguered stocks.
With its massive size and displacement, an aircraft carrier takes a long time to turn around. Likewise, with a wave of bad news and negative investor sentiment, sometimes it can take a quite a while for the fortunes of struggling stocks to change. With that in mind, it's not too surprising that our 2007 contrarian portfolio got off to a rough start.
During the three months since we introduced our portfolio, it produced a total return of negative 4.41%. This stands in stark contrast to the positive 3.49% that the S&P 500 returned during the same period. Obviously, no investor would be thrilled with an almost 8% underperformance. Attempting to sugarcoat these returns would be pointless. Quite simply, they stunk.
Patrick O'Shaughnessy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.