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Regarding the results of the different CAPS rated stocks, reported here by Tim Hanson:
http://tinyurl.com/25qecq

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.

Thanks,
--Pete
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