Model Portfolio rmcduff:RMG1

This is a commentary from Marketocracy on Randolph McDuff's RMG1 model portfolio

When selecting a manager, we always look at their largest positions, particularly when they represent a large portion of their portfolio. We like to know what their track record is with those stocks: how they've traded them, whether it is in their "performance zone" or not and what they see in the stock.

mFOLIO Master, Randolph McDuff's two largest positions are Mastercard Inc (nyse: MA) and Novo-Nordisk A/S (nyse: NVO) currently representing about 30% of the portfolio. Randolph writes about these two stocks, along with his third largest position, Guangshen Railway (nyse: GSH) in his Q3 Review above.

Below is a chart which details McDuff's trading of Mastercard since he started buying it just after its IPO in May 2006. You'll see that to keep MA from becoming too large a position as it skyrocketed to a six bagger, McDuff has made astute sells on jumps in the price including right near the all-time high. But as MA has dropped in price with the credit crisis - losing more than half of its value, McDuff has held on. This is very much in keeping with his investment style and you'll see from his interview in MarkeTalk and in his Q3 Review why he continues to like Mastercard and expects to keep it as a long-term position in his portfolio.

In the chart above, the stock price of Mastercard is shown as a BLUE line with the prices shown on the far right vertical axis. The number of Mastercard shares owned by McDuff in RMG1 is shown as a RED line with the values shown on the far left vertical axis. The GREEN Shaded vertical bars represent the dates when McDuff was BUYING more shares of Mastercard and the RED Shaded vertical bars represent the dates when McDuff was SELLING shares of Mastercard.