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FundAlarm Discussion Board
2001 Model Portfolio:
Performance through January 22, 2001

The FundAlarm model portfolio started on January 1, 2001, with a hypothetical value of $100,000, and it's now worth $101,236, for a total YTD return of 1.236%.

Over the same period, the Vanguard Total Stock Market fund, which is the benchmark for the model portfolio, is now worth $101,850, for a total YTD return of 1.85%.

Advantage: Vanguard Total Stock Market fund. As the reporter for the FundAlarm Discussion Board portfolio says: "Obviously the contest has just begun, but I have to believe that John Bogle [founder of Vanguard] is snickering in the background. I can hear him saying how indexing is superior due to low expenses and greater tax efficiency."

Fund category	Fund name	% of Portfolio	Fund Return YTD (%)
Large-cap value	Vanguard Windsor II (VWNFX)	5%	-2.50
Large-cap value	Excelsior Value Equity(-)	5%	1.37
Large-cap blend	Gabelli Growth (GABGX)	10%	+2.10
Large-cap growth	TCW Galileo Select Equity (TGCEX)	5%	+5.54
Mid-cap value	Excelsior Value & Restruct (UMBIX)	5%	+1.37
Mid-cap blend	Legg Mason Opportunity (LMOPX)	5%	+9.07
Mid-cap growth	Invesco Dynamics (FIDYX)	5%	+1.01
Mid-cap growth	T. Rowe Price Mid-Cap Growth (RPMGX)	5%	-1.20
Small-cap value	Strong Small Cap Value (SSMVX)	5%	+4.92
Small-cap blend	Buffalo Small Cap (BUFSX)	5%	+0.59
Small-cap growth	Bjurman Micro Cap (BMCFX)	5%	-0.33
International	Masters Select International (MSILX)	10%	-0.45
Technology	Black Oak (-)	5%	+21.19
Energy	Icon Energy (ICENX)	5%	-7.88
Financial	T. Rowe Price Financial (PRISX)	5%	-5.00
Real estate	Longleaf Realty (LLREX)	5%	+2.46
Health care	Invesco Health Sciences (FHLSX)	5%	-13.42
Fixed Income	Fidelity Convertible Securities (FCVSX)	5%	+2.21
Total		100%

Some other observations by the Discussion Board reporter: "FundAlarm Discussion Board regulars are aware of the importance of long-term historical fund performance, yet they selected two new funds as part of their portfolio: Black Oak (selected by asmithii, and promoted by rono), and Legg Mason Opportunity (selected by Mark). Although both these funds are recent additions to the fund market universe, they have one important attribute in common: Experienced and highly successful managers (James Oelschlager at Black Oak, and William Miller at Legg Mason Opportunity). It can be argued that newly-formed funds have a distinct advantage over their older brethren, since they do not have a cumbersome asset base, allowing new additions to the portfolio to positively impact performance."

FundAlarm readers may recall that Bob Cochran, a financial planner and Discussion Board regular, also submitted a model portfolio. Bob's portfolio is worth $100,957, for a total YTD return of 0.957%:

Bob wishes to note that he does not maintain static investment positions for an entire year with actual clients, and this portfolio is only an attempt to allocate dollars given investment conditions at the beginning of 2001. An actual client portfolio might look very different in three, six, or nine months, depending on many factors that cannot be predicted at this moment. Also, a 100% equity portfolio (as below) might not be appropriate for many investors.

Fund category	Fund name	Percentage of Portfolio	Fund Return YTD (%)
Large-cap value	Thornburg Value	15%	-0.12
Large-cap growth	White Oak Growth (WOGSX)	20%	+7.95
Mid-cap value	Muhlenkamp (MUHLX)	10%	+3.67
Mid-cap growth	Artisan Mid Cap (ARTMX)	15%	+2.76
Small-cap value	Strong Small Cap Value (SSMVX)	4%	+4.92
Small-cap growth	Rockland Small Cap Growth (RKGRX)	6%	-6.71
International	Julius Baer Intl Equity (BJBIX)	18%	-2.47
Technology	Van Wagoner Technology (VWTKX)	6%	-0.30
Health	Dresdner RCM Global Health Care (DGHCX)	6%	-10.98
Total		100%

Do you have any questions or comments about these model portfolios?
Post them on the FundAlarm Discussion Board.