Louis Navellier is well-known for his “little book” – that’s “The Little Book That Makes You Rich” for the uninitiated. In this Business Week best seller, Navellier describes his stock selection system. He explains how he is able to pick stocks primarily by taking a look at their fundamentals and buying pressures. According to Navellier, the “A” graded stocks returned 1267.9% for the past 13 years, compared with only 61% for the S&P 500 index.
However, Navellier’s performance has not shown the same strength in recent years. In fact, over the past year, his returns have been a bit disappointing. Most of the funds under Navellier & Associates generated negative returns last year and underperformed their benchmarks – but Navellier is slowly recovering this year. To date, the largest 10 positions in his 13F portfolio at the end of 2011 have returned 14%, versus 11.4% for the S&P 500 index over the same period.
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