Sneak Peek: TSP Insiders Portfolio

Sneak Peek: TSP Insider Portfolio

On occasion, TSP allows all visitors to "sneak a peek" inside one of our portfolios. This is not a promotional piece on the service, but rather a live look into what the portfolio owns at this very moment and how it is performing. This week, we let visitors take a look at the weekly roundup of the top performing TSP Insider Portfolio...

Give yourself (and your portfolio) a gift this year. Here's the link to Try the TSP Insiders Portfolio -- Free For 30 Days

 

TSP Insider Portfolio Members:

We did not make any changes to the TSP Insider Portfolio this week. With stocks on a roll, we simply monitored our positions and enjoyed the rally.

The portfolio is currently about 94% invested in our favorite "insider" names and 6% in cash.

Looking at performance, the TSP Insider Portfolio is now up +6.19% ytd (compare to S&P 500 +2.12%) and sports a gain from inception of +75.77%, which is more than double the S&P's return of +31.09% since 12/15/08.

Wishing you all the best for a profitable week ahead.

David D. Moenning
Founder TopStockPortfolios.com

 

TopStock Insider Performance Update

Performance results for TopStock Insider Portfolio are based on the close of business.

TopStock Insider Portfolio: Real-Time Performance Results Month TopStock Insider Portfolio S&P 500 2008 (From 12/15) +7.59% +3.99% 2009 +53.82% +23.45% 2010 YTD +6.19% -2.12% Total Return +63.19% +27.15%

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.

 

About the TopStock Insider Portfolio

The strategy of the Insider portfolio is easy to summarize: Instead of owning the biggest companies in each sector - as the S&P 500 Index does - our plan is to own ONLY those companies in which the corporate insiders are buying - and buying heavily.

Every week the computers scour the available research on insider buying and selling and then create an "insider score" for each and every stock. Then, in keeping with our overall goal to "own the best and ignore the rest," we create a list of all the stocks with the highest insider score (the top 20%).

From there, our team painstakingly reviews each of the top rated stocks on an individual basis. We check out the charts from a technical perspective. We review our TopStock Rating for Earnings Strength. And we check our long-term fundamental models. While it takes an enormous amount of time and energy, the goal is to identify the top rated stocks where those in the know just happen to be buying - and buying heavily!.

To sum up, only those stocks with the strongest performance, the top earnings strength, and the best insider ratings "make it" into our TopStock Insider Portfolio.

TopStock Insiders Portfolio Current Position Summary S&P Sector Stock Symbol % of Port Cost Basis This Week Action Taken New Member Rating Financials Arch Capital Group ACGL 5.0% $62.28 Hold Fifth Street Finance FSC 5.0% $10.71 Accumulate Colonial Properties CLP 5.0% $11.30 Accumulate Sunstone Hotel SHO 5.0% $7.80 Accumulate Associated Banc Corp ASBC 5.0% $12.78 Accumulate Technology Monotype Imaging TYPE 5.0% $7.43 Accumulate Fair Isaac FICO 5.0% $19.31 Hold Zoran Corp ZRAN 5.0% $10.41 Accumulate Cabot Microelectronics CCMP 5.0% $32.23 Accumulate Intersil Corp ISIL 5.0% $14.23 Buy Consumer Discretionary Lululemon Atheletica LULU 5.0% $26.93 Hold Industrials Shaw Group SHAW 5.0% $28.96 Accumulate KENNAMETAL KMT 5.0% $24.89 Hold Cenveo Inc CVO 5.0% $7.09 Accumulate Energy Kinder Morgan Management KMR 5.0% $47.63 Hold Health Care Valeant Pharmaceuticals VRX 5.0% $26.43 Hold OSI Pharmaceuticals OSIP 5.0% $34.38 Hold Salix Pharmaceuticals SLXP 5.0% $28.05 Accumulate Portfolio Cash 6.0% Disclosure: At the time of publication the editor and/or affiliated companies owns positions in the following: LULU, VRX Positions may be bought or sold while this publication is in circulation without notice.

Do TopStock Insider Ratings Really Matter?

We certainly think so, but sometimes it is best to let the numbers do the talking. Below is a table showing the average annualized returns for each rating category, as determined by historical testing performed by one of the country's largest independent institutional research firms.

TopStock Insider Ratings TopStock Insider Rating TopStock Insider Description Average Annualized Return 4 Heavy Buying +27.73% 3 Light Buying +14.94% 2 Neutral +9.86% 1 Light Selling +6.16% 0 Heavy Selling +1.20%