Back on a Losing Streak?

I have commented several times about the streaky nature of MFI. I don't profess to understand it, but it seems to me that all investment approaches have momentum and periods where they don't have momentum. I remember reading a study once that said if you picked the best mutual fund over the past twelve months, it would typically still outperform the broader indices the next twelve months.

For MFI, JG told us that MFI only outperformed the indices 7 out of every 12 months. That would be a reason it would not catch on. So far, we haven't even done that well. In addition, it has been far from random. Below I list the 47 monthly tracking portfolios I have set up since January 2006. Beside each one I show a 1 or a 0. A 1 means MFI beat the Russell 3000 over the stretch, a zero means the Russelll 3000 won. Note the runs of ones and zeros.

1/6/2006	1
2/17/2006	1
3/29/2006	1
4/7/2006	0
5/12/2006	1
5/31/2006	1
6/30/2006	1
7/31/2006	1
8/31/2006	0
9/28/2006	0
10/27/2006	0
11/29/2006	0
12/28/2006	0
1/26/2007	0
2/27/2007	0
3/26/2007	0
4/27/2007	0
5/29/2007	0
7/3/2007	0
7/30/2007	0
8/30/2007	0
9/27/2007	0
11/2/2007	0
11/28/2007	0
12/28/2007	1
1/25/2008	0
2/26/2008	0
3/24/2008	0
4/25/2008	0
5/28/2008	1
7/2/2008	1
7/29/2008	1
8/29/2008	1
9/26/2008	1
10/31/2008	1
11/26/2008	1
12/26/2008	1
1/23/2009	1
2/27/2009	1
3/27/2009	1
4/24/2009	1
5/29/2009	1
6/29/2009	0
7/29/2009	0
8/28/2009	0
9/25/2009	0
10/30/2009	0

Far from random.

Not much to comment on regarding my portfolio. I was right about HCKT earnings being sub-par, the stock must be down 20% in past two days (sigh). WTW also dropped and my non MFI MFI, WILC went up nicely post earnings.

CMFO announced earnings this morning (China Marine Food Group Announces Third Quarter 2009 Results). They were pretty much as expected, so no excitement there (a good thing?).

Finally, Goldman Sachs drubbed a couple of my stocks the past two days.

1. They removed GME from their fabled Conviction Buy list (GameStop downgraded by Goldman Sachs).
   
2. Then BKE got a rare "Sell" rating by GS (Buckle shares fall after Goldman says 'Sell'). GS essentially said that things are so good for BKE that there is nowhere to go but down.