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2007 Contrarian Portfolio: Performance Update

We still predict strong returns for this set of beleaguered stocks.

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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.

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Patrick O'Shaughnessy does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.