Disclaimers: Conrad Leifur owns SYK, CAH, GPS, HNZ, HAL, BHI, CVX, CSCO and FITB in his S&P Best of Breed Model
August 2, 2010: Since the model is always fully invested with sector weights that match the S&P 500, outperformance or underperformance relative to the benchmark is driven by how portfolio holdings perform relative to their sectors. In July, model performance was slightly below that of the S&P 500. benchmark due to health care holdings Stryker (SYK) and Cardinal Health (CAH), along with consumer holdings Gap (GPS) and Heinz (HNZ), each of which underperformed their respective sectors. On the positive side of the ledger were energy holdings Halliburton (HAL), Baker Hughes (BHI), and Chevron (CVX), which solidly outperformed the broader energy sectors.
The monthly rebalancing resulted in additions to Cisco (CSCO), Fifth Third (FITB), and Gap (GPS), while exposure to Halliburton (HAL) and Baker Hughes (BHI) was reduced.
