Magic Formula Investing Executed

Performance details for Month 27

2009-10-08T13:34:00.000-07:00

As of 10/8/2009, my 27 month old Magic Formula Fund (MFF1) was beating the SP500 by 7.73% (4.80% annualized). My second 13 month old fund (MFF2) was trailing the SP500 by 2.54%.

Oct 2009 Picks: MHP, RTN, TPC

2009-10-08T13:30:00.000-07:00

MFF1: MHP, RTN, TPC
MFF2: MHP, RTN, TPC

Sept 2009 Picks: LO, UNTD, ENDP

2009-09-08T10:47:00.000-07:00

MFF1: LO, UNTD, ENDP
MFF2: LO, UNTD, ENDP

Performance details for Month 26

2009-09-08T10:12:00.000-07:00

As of 9/8/2009, my 26 month old Magic Formula Fund (MFF1) was beating the SP500 by 3.77% (2.98% annualized). My second 1 yr old fund MFF2 was beating the SP500 by 2.46%.

August 2009 Picks: BKE, EME, CBZ

2009-08-12T15:12:00.000-07:00

MFF1: BKE, EME, CBZ
MFF2: BKE, EME, CBZ

Performance details for Month 25

2009-08-12T14:57:00.000-07:00

As of 8/1/2009, my 25 month old Magic Formula Fund (MFF1) was beating the SP500 by 5.23% (4.04% annualized). This is up from a month ago when I was beating the SP500 by 2.51%. My second fund, the 10 month old MFF2 fund, is now beating the SP500 by 0.63%. Click on the images below to see further details for MFF1.

July 2009 Picks: VM, IPHS, UTA

2009-07-18T12:40:00.000-07:00

MFF1: VM, IPHS, UTA

MFF2: VM, IPHS, UTA

Performance details for 2 years

2009-07-14T14:54:00.000-07:00

As of 7/1/2009, my 24 month old Magic Formula Fund (MFF1) was beating the SP500 by 2.51% (2.63% annualized). This is slightly down from a month ago when I was beating the SP500 by 2.64%. My second fund, the 9 month old MFF2 fund, was trailing the SP500 by 5.83%. Click on the images below to see further details for MFF1.

June 2009 Picks: MSTR, PFE, MLHR

2009-06-18T22:29:00.000-07:00

MFF1: MSTR, PFE, MLHR

MFF2: MSTR, PFE, MLHR

Performance details for Month 23

2009-06-18T21:45:00.000-07:00

As of 5/31/2009, my 23 month old Magic Formula Fund (MFF1) was beating the SP500 by 2.64% (2.95% annualized). This is slightly down from a month ago when I was beating the SP500 by 5.33%. My second fund, the 8 month old MFF2 fund, was trailing the SP500 by 5.50%. Click on the images below to see further details for MFF1.

May 2009 Picks: SOLR, RST, TWX

2009-05-10T06:01:00.000-07:00

MFF1: SOLR, RST, TWX

MFF2: SOLR, RST, TWX

Performance details for Month 22

2009-05-10T05:44:00.000-07:00

As of 4/30/2009, my 22 month old Magic Formula Fund (MFF1) was beating the SP500 by 5.33% (5.00% annualized). This is considerably up from a month ago when I was trailing the SP500 by 3.18%. My second fund, the 8 month old MFF2 fund, was trailing the SP500 by 4.10%. Click on the images below to see further details for MFF1.

April 2009 Picks: KBR, TRA, PPD, NTRI

2009-04-21T20:44:00.000-07:00

MFF1: KBR, TRA, PPD

MFF2: TRA, PPD, NTRI

Performance details for Month 21

2009-04-21T20:34:00.001-07:00

As of 3/31/2009, my 21 month old Magic Formula Fund (MFF1) was trailing the SP500 by 3.18% (1.51% annualized). This is slightly up from a month ago. My second fund, the 7 month old MFF2 fund, was trailing the SP500 by 10.19%. Click on the images below to see further details for MFF1.

March 2009 Picks: HUBG, LOOP, DECK

2009-03-13T09:26:00.000-07:00

MFF1: HUBG, LOOP, DECK

MFF2: HUBG, LOOP, DECK

Performance details for Month 20

2009-03-05T05:39:00.000-08:00

As of 3/1/2009, my 20 month old Magic Formula Fund (MFF1) is still trailing the SP500. I am now trailing the SP500 by 3.26% (2.82% annualized). This is slightly up from a month ago. My second fund, the 6 month old MFF2 fund, is trailing the SP500 by 12.96%. Click on the images below to see further details for MFF1.

Feb 2009 Picks: GHM, TKTM, ADSK

2009-02-11T13:42:00.000-08:00

MFF1 picks: GHM, TKTM, ADSK
MFF2 picks: GHM, TKTM, ADSK

Performance details for Month 19

2009-01-31T14:00:00.000-08:00

As of 1/31/2009, my 19 month old Magic Formula Fund (MFF1) is back to trailing the SP500. I am now trailing the SP500 by 3.57% (3.28% annualized). This is down from a month ago of beating the SP500 by 0.30% (0.29% annualized). My second fund, the 5 month old MFF2 fund, is trailing the SP500 by 12.10%. Click on the images below to see further details for MFF1.

Jan 2009 Picks: MTW, WFR, BIDZ, RSH, TSCM

2009-01-10T04:26:00.000-08:00

MFF1 picks: MTW, WFR, BIDZ
MFF2 picks: RSH, TSCM, BIDZ

Performance details for 1.5 years

2009-01-09T03:51:00.000-08:00

As of 12/31/2008, my 18 month old Magic Formula Fund (MFF1) is beating the SP500 by 0.30% (0.29% annualized). This is up from a month ago of trailing the SP500 by 0.19% (2.65% annualized). My second fund, the 4 month old MFF2 fund, is trailing the SP500 by 10.34%. Click on the images below to see further details for MFF1.

Dec 2008 Picks: VCLK, DELL, ACN, KFY, ASF

2008-12-08T14:21:00.000-08:00

MFF1 picks: VCLK, DELL, ACN
MFF2 picks: VCLK, KFY, ASF

Performance details for Month 17

2008-12-02T15:52:00.000-08:00

As of 12/2/2008, my 17 month old Magic Formula Fund (MFF1) is trailing the SP500 by 0.19% (2.65% annualized). This is down from a month ago of beating the SP500 by 1.74% (0.98% annualized). My second fund, the 3 month old MFF2 fund, is trailing the SP500 by 10.80%. Click on the images below to see further details for MFF1.

Nov 2008 Picks: DAR, DHX, PRFT

2008-11-06T16:09:00.001-08:00

Here are my November picks for both MFF1 and MFF2:

DAR, DHX, PRFT

Performance details for Month 16

2008-11-03T18:40:00.000-08:00

As of 10/31/2008, my 16 month old Magic Formula Fund (MFF1) was beating the SP500 by 1.74% (0.98% annualized). This is down significantly from a month ago of 8.47% (11.32% annualized). In the meantime my second fund, the 2 month old MFF2 fund, is trailing the SP500 by 8.32%. Click on the images below to see further details for MFF1.

Below is a graph that shows the delta of annualized returns for MFF1 vs SP500 in the last 3 months. Obviously one cannot conclude much from this volatity for or against the premise of Magic Formula. I am still optimistic that the Magic Formula could work in the long run. I certainly intend to continue testing it for a while.

Oct 2008 Picks: EBAY, CALM, CF

2008-10-13T16:00:00.000-07:00

Here are my October picks:

MFF1: EBAY, CALM, CF

MFF2: EBAY, WFR, KBR

I was a bit late in picking my October stocks. I usually try to pick my stocks within the first 10 days of each month. I will try to stick to that rule going forward.

I have not had much time to research my above picks because I have been spending my "investing time" reading another best seller investing book called "Rule No.1" by Phil Town.

I will continue to run my two Magic Formula Funds. I am thinking of starting one other fund in which I plan to hold a maximum of 6 really-well-researched positions as advised by Phil Town in his Rule No.1 book.

I have been spending most of my time following his advice to identify a few winners. I plan to commit up to 50k to that fund. I have not yet identified any winner stocks for this new fund which I will call - RULE1.

Btw, MFF2 is doing horribly so far. Given the craziness of the markets of last 2 weeks, it has been beaten down really badly. I think it is still too early to deduct any conclusive ideas given its short life time and the crazy few past weeks. As of Oct 13 market close (after a historic and record breaking 10% up day), my MFF2 (which started its life on Sep 5, 2008) is down 25.05% (versus SP500 which is down 18.54%). So I am lagging the SP500 by 6.50% on a straight basis. I am not even calculating annualized numbers for this fund at this point.

The performance of my MFF1 has also suffered majorly in the last 2 weeks. MFF1 is now beating the SP500 only by 2.78% (2.39% annualized).