Who Says Indexes are Not Performance Chasers?
Posted on Monday, June 30th, 2008 | In Current Market News, Stocks to WatchThis really is beginning to remind me of the late 90s and technology when every index was in a hurry to stuff itself with tech stocks. Fresh off two of our holdings (natural gas and coal) being added to the S&P 500 [Jun 13: Cabot Oil & Gas (COG) and Massey Energy (MEE) Added to S&P 500] the Russell 1000 added “net” 8 energy companies, including 3 of our holdings - Alpha Natural Resources (ANR), Atwood Oceanics (ATW), and newly minted position Encore Acquisition (EAC). Another company Petrohawk Energy (HK) is one of the hottest stocks in the market as well. The Russell 1000, due to median size of companies we own, is what we mostly measure ourself against.
- Ten companies in the “other energy” sector, which encompasses energy companies not considered integrated oil companies, are being to be added to the Russell 1000 in this year’s reconstitution of the large-stock index, while 2 in the sector are being removed.
- Alpha Natural Resources., Atwood Oceanics Inc., Encore Acquisition Co., Exterran Holdings Inc., Hercules Offshore Inc., Mariner Energy Inc., Oil States International Inc., Petrohawk Energy Corp. and Whiting Petroleum Corp. were added to the Russell 1000, all moving up from the small-stock Russell 2000.
- Cheniere Energy Inc. and Western Refining Inc. were removed from the large-cap index and moved to the Russell 2000.
- Tacoma, Wash.-based Russell Investments realigns the Russell 3000 index once per year, tracking what it maintains is 99 percent of the U.S. equity market. That index is then broken down to 26 smaller indexes, including the widely watched Russell 1000 index of large capitalization stocks.
Long Alpha Natural Resources, Atwood Oceanics, Encore Acquisition, Massey Energy, Cabot Oil & Gas in fund; long Alpha Natural Resources in personal account
Last 5 posts by Trader Mark
- Peter Schiff July 28 2008 on Glenn Beck - August 3rd, 2008
- Bookkeeping: Closing Mechel (MTL) - July 23rd, 2008
- American Express (AXP) Weakening - July 23rd, 2008
- Healthcare Companies that Start with the Letter "I" Outperform - July 23rd, 2008
- Things You Would of Never Said 8 Days Ago - July 22nd, 2008
 About Trader Mark (http://fundmyfund.blogspot.com)
Mark is a self taught private investor, fascinated by the market since an early age, discovering mutual funds as a teenager in the 80s, and then moving to equities by the mid 90s. His equity focus is identifying secular growth trends, and the companies most likely to benefit from these macro trends. Stocks are identified through fundamental analysis, although basic technical analysis is used in determining entry and exit points. With a degree in Economics from the University of Michigan, a broader understanding of the economy as a whole, along with interpreting investor psychology is also a major interest for Mark. His career background has focused on financial analysis in corporate America. |
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