United States: Portfolio Strategy - US Thematic Views: GARP Update -  July ideas and our June report card

July 2009 investment ideas
The Health Care, Info Tech, Consumer Staples, and Telecom Services sectors currently offer the best combination of growth and value. Materials, Financials, Energy, and Utilities screen as Unattractive.

Three sub-sectors now offer Growth-at-a-Reasonable Price (GARP)
Apparel Retail, Brewers, and Food Distributors entered our GARP screen.

Nine sub-sectors were removed from our GARP basket
Cable and Satellite, Computer Storage and Peripherals, Construction and Engineering, Drug Retail, Hypermarkets and Super Centers, Life Sciences Tools and Services, Managed Health Care, Research and Consulting Services, and Specialized Consumer Services no longer screen as GARP.

June performance
GARP (+2.3%) outperformed the S&P 500 (+0.2%) in June. Since inception (January 2004), GARP has outperformed the S&P 500 (-0.9% vs. -10.1%, positive excess return of 920 bp). Bloomberg contains real-time pricing and constituents of our baskets.

>> United States: Portfolio Strategy - US Thematic Views: GARP Update - July ideas and our June report card  June 30, 2009 [PDF, 153 KB]