Double your money: one big winner helps Jeffrey Marcus' portfolio outpace the S&P 500.A COMPANY THAT MAKES CAST METAL PARTS AND fasteners for the aerospace industry may not sound exciting, but from May of last year through early June, shares of Precision Castparts Corp. (PCP PCP abbr. 1. phencyclidine 2. primary care physician Pneumocystis carinii pneumonia (PCP) ) nearly doubled, jumping an eye-popping 99%. Powered by that performance, the portfolio assembled by Jeffrey Marcus, senior portfolio manager at Paradigm Asset Management Co. (No. 14 on the BE ASSET MANAGERS list with $1.02 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. ) returned 27.4%, out-pacing the S&P 500's 195%. At the time of his selections, Marcus chose stocks from four different industries to hedge his bets against an expected economic slowdown. The growth of the nation's gross domestic product--which measures the size of the overall economy--did indeed slow beginning in the second half of 2006: But Marcus' portfolio proved to be sturdy. Precision Castparts reported impressive numbers. For the quarter ending April 1, sales climbed 64% over the year prior, and profits more than doubled. Marcus says another driver for the stock has been its recent addition to the S&P 500 stock index which means that pension plans and other institutional investors that hold the companies in the index have to buy PCP shares. Shares of defense contractor Noun 1. defense contractor - a contractor concerned with the development and manufacture of systems of defense armed forces, armed services, military, military machine, war machine - the military forces of a nation; "their military is the largest in the region"; Lockheed Martin Corp. (LMT LMT left mentotransverse (position of fetus). ) posted a healthy gain of 35.1%. Marcus' two other picks lost ground. Women's clothing retailer coldwater Creek Inc. (CWTR CWTR Child Welfare Training Resources CWTR Climb Well to Right ) saw its shares drop 12.3%. Trailing the pack were shares of Archer Daniels Midland The Archer Daniels Midland Company (NYSE: ADM), is a conglomeration based in Decatur, Illinois. ADMoperates more than 270 plants worldwide, where cereal grains and oilseeds are processed into numerous products used in food, beverage, nutraceutical, industrial and animal feed Co. (ADM See add/drop multiplexer. (language) ADM - A picture query language, extension of Sequel2. ["An Image-Oriented Database System", Y. Takao et al, in Database Techniques for Pictorial Applications, A. Blaser ed, pp. 527-538]. ) which fell 12.2%. "This is still a good long-term play," he says. "It's just going to be volatile."
Price Price Total
Company (Ticker) 5/18/06 4/12/07 Return *
Archer Daniels Midland Co. (ADM) $39.34 $34.54 12.2%
Coldwater Creek Inc. (CWTR) 27.19 2437 -12.3
Ln(kheed Martin Corp. (LMT)) 71.71 96.89 35.1
Precision Castparts Corp. (P(P) 58.66 116.74 99.0
Total Portfolio 27.4
S & P 500 1,261.81 1,507.67 19.5
CURRENT VALUE OF
$4,000 INVESTMENT: $5,096.00
* INCLUDES STOCK SPLITS AND DIVIDENDS
SOURCE: YAHOO! FINANCE
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