Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Regarding the results of the different CAPS rated stocks, reported here by Tim Hanson:

When I read this article reporting the results I had assumed that each group represented a portfolio of all of the stocks in each star rating at any given time. So for example, all through the year, the 5 star portfolio would contain all of the 5-star rated stocks. And stocks would be traded in and out of the portfolio as their rating fluctuated in and out of 5 star territory.

However, I've seen several critical posts claiming that these returns are only the TTM returns of the stocks in each rating at the *end* of the 12 month period. If that is true, then I agree with those posters that these results are somewhat meaningless.

But on re-reading the articles, I found that it really isn't stated clearly what was done.

Can anyone shed some light on this?

I apologize if this has already been discussed, but I searched and couldn't find the answer.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.