Terry Ruffolo, Director of Media Relations, 312-265-9213, firstname.lastname@example.org
Zacks In The News
For Immediate Release
Zacks Releases Semiannual Model Portfolio Rankings
Chicago, IL- August 6, 2012- Picking winning stocks is not an easy job under the most normal of market conditions. That task was even more challenging in the first half of this year given all of the market headwinds, uncertainty and volatility. Yet, results of Zacks’ semiannual ranking of brokers’ model portfolios show eight out of nine surveyed had positive returns. The top two ranked model portfolios had market beating returns in the first six months of 2012. They were Wedbush Securities, placing in the top spot, followed by Bank of America/Merrill Lynch, coming in a close second. Wedbush placed first in the one and three year time periods as well. MSSB placed third in the first half this year, followed by Edward Jones in fourth. Goldman Sachs rounded out the top five.
There was something new this year that was common among the better performers. “The better performing portfolios were heavily weighted in medical stocks,” says Zacks Equity Strategist, Tracey Ryniec. “It was the second highest ranked sector among them. The first was computer/technology. I don’t remember ever seeing the medical category show up where it was as high a concentrated sector. Previously, finance had still ranked high as one of the most popular sectors. It appears in 2012 the brokers have finally lost some of their love for that group. They’re still in it, but it’s not ranking as high.”
The top ranked brokerages for first half 2012 (12/31/11- 6/30/12) are as follows…
|2.||Bank of America/Merrill Lynch||11.76%|
|6.||McAdams Wright Ragen||3.95%|
Zacks’ complete rankings for the six month, one, three and five year time periods are available to the media upon request. Zacks calculates the performance of the brokerage “model portfolios” it tracks, on an equal-weighted basis. Total return performance figures include stock price changes, dividends and hypothetical trading commissions of 1% for each addition and deletion to the model portfolios.
The leading brokerage firms employ analysts who produce recommendations for hundreds of stocks, which can not all be bought for a client portfolio. These brokerage firms then create model portfolios from all of the stocks each firm is following. The process to create these lists range from a top down quantitative methodology, to a bottom up fundamental process.
Twice yearly, Zacks Investment Research ranks the performance of the model portfolios of some of the street’s top brokerages as well as those with a little less name recognition. The model portfolios in the Zacks survey include U.S. traded equities including ADRs.
Director of Media Relations