It is really accelerating in it's performance of late. You can see that in a smaller scale by looking at my portfolio, but you can also see it by looking at my MFI Index. This is an Index I have created, kind of like the Russell 3000 Index. I take the top 50 stocks over $100m at the start of each year and track for a year and then rebalance. The table below shows how the index has done going back to 2006. Note in many ways, this is just a subset (1/12th) of my monthly tracking portfolios.
| Annual | Inception to Date | |||
| Year | Russell | Russell ITD | MFI ITD | |
| 2006 | 11.40% | 15.03% | 11.40% | 15.03% |
| 2007 | 4.09% | -6.69% | 15.96% | 7.34% |
| 2008 | -37.05% | -37.97% | -27.00% | -33.42% |
| 2009 | 32.51% | 45.18% | -3.27% | -3.34% |
| 2010 | 18.38% | 22.77% | 14.50% | 18.67% |
| 2011 | -0.56% | -10.47% | 13.87% | 6.25% |
| 2012 | 16.38% | 9.70% | 32.52% | 16.56% |
| 2013 | 19.09% | 26.26% | 57.81% | 47.17% |
As you can see, MFI beat the R3K in 2006, 2009, 2010 and now 2013 (so far). But looking at the Inception to date numbers, you'd be up 57% by having been in R3K since 2006 versus 47% for MFI. But that gap is narrowing as the hangover from For Profit Education Stocks and Chinese Reverse Merger fades.
Here are the 50 stocks in the current MFI Index and how they have performed so far in 2013:
| Stock | Start | Last Week | Current | YTD Change | Weekly Change | Shares |
| APOL | 20.92 | 17.94 | 18.49 | -11.6% | 3.1% | 11.14 |
| AGX | 18.00 | 15.38 | 16.30 | -9.4% | 6.0% | 12.95 |
| BAH | 13.92 | 17.96 | 18.64 | 33.9% | 3.8% | 16.75 |
| CA | 21.98 | 28.76 | 30.42 | 38.4% | 5.8% | 10.61 |
| CPLA | 28.23 | 42.15 | 43.86 | 55.4% | 4.1% | 8.26 |
| CF | 203.16 | 175.85 | 184.54 | -9.2% | 4.9% | 1.15 |
| CSCO | 19.65 | 24.74 | 26.28 | 33.7% | 6.2% | 11.86 |
| DELL | 10.14 | 13.11 | 13.48 | 32.9% | 2.8% | 22.99 |
| DLX | 32.24 | 36.92 | 38.01 | 17.9% | 3.0% | 7.23 |
| DMRC | 20.70 | 21.73 | 22.33 | 7.9% | 2.8% | 11.26 |
| DLB | 29.33 | 33.92 | 34.50 | 17.6% | 1.7% | 7.95 |
| GME | 25.09 | 43.59 | 43.77 | 74.5% | 0.4% | 9.29 |
| GNI | 67.20 | 73.59 | 76.41 | 13.7% | 3.8% | 3.47 |
| GTAT | 3.03 | 4.19 | 4.38 | 44.6% | 4.5% | 76.93 |
| HLF | 32.94 | 48.99 | 49.63 | 50.7% | 1.3% | 7.08 |
| HFC | 46.55 | 41.36 | 44.64 | -4.1% | 7.9% | 5.01 |
| IDCC | 41.09 | 38.82 | 40.13 | -2.3% | 3.4% | 5.67 |
| INTX | 9.48 | 9.37 | 9.45 | -0.3% | 0.9% | 24.59 |
| ESI | 17.31 | 24.30 | 26.89 | 55.3% | 10.7% | 13.47 |
| JCOM | 30.60 | 43.15 | 44.26 | 44.6% | 2.6% | 7.62 |
| KLIC | 11.99 | 11.23 | 11.26 | -6.1% | 0.3% | 19.44 |
| LPS | 24.62 | 32.60 | 32.31 | 31.2% | -0.9% | 9.47 |
| MANT | 25.94 | 26.97 | 27.14 | 4.6% | 0.6% | 8.99 |
| MSFT | 26.71 | 34.67 | 36.13 | 35.3% | 4.2% | 8.73 |
| NATR | 14.48 | 17.58 | 18.00 | 24.3% | 2.4% | 16.10 |
| NSU | 4.28 | 2.91 | 3.13 | -26.9% | 7.6% | 54.47 |
| NTI | 25.44 | 24.77 | 26.57 | 4.4% | 7.3% | 9.16 |
| NUS | 37.05 | 64.31 | 78.60 | 112.1% | 22.2% | 6.29 |
| PDLI | 7.04 | 8.20 | 8.48 | 20.5% | 3.4% | 33.11 |
| PETS | 11.10 | 13.37 | 14.44 | 30.1% | 8.0% | 21.00 |
| PBI | 10.64 | 14.94 | 14.52 | 36.5% | -2.8% | 21.91 |
| POOSF | 1.42 | - | - | -100.0% | #DIV/0! | 164.63 |
| POZN | 5.01 | 5.33 | 5.35 | 6.8% | 0.4% | 46.53 |
| QCOR | 26.72 | 47.14 | 49.80 | 86.4% | 5.6% | 8.72 |
| RTN | 57.56 | 66.39 | 70.57 | 22.6% | 6.3% | 4.05 |
| RPXC | 9.04 | 16.76 | 17.76 | 96.5% | 6.0% | 25.79 |
| SAI | 11.32 | 15.10 | 15.22 | 34.5% | 0.8% | 20.59 |
| STX | 30.42 | 46.10 | 47.06 | 54.7% | 2.1% | 7.66 |
| SVLC | 2.52 | 1.44 | 1.65 | -34.5% | 14.6% | 92.51 |
| SAVE | 17.73 | 32.35 | 33.45 | 88.7% | 3.4% | 13.15 |
| STRA | 56.17 | 50.46 | 51.20 | -8.8% | 1.5% | 4.15 |
| TNAV | 7.99 | 5.40 | 5.84 | -26.9% | 8.1% | 29.18 |
| TZOO | 18.99 | 29.13 | 29.92 | 57.6% | 2.7% | 12.28 |
| UIS | 17.30 | 23.24 | 24.63 | 42.4% | 6.0% | 13.47 |
| USMO | 11.68 | 13.84 | 14.53 | 24.4% | 5.0% | 19.96 |
| USNA | 32.93 | 73.99 | 77.73 | 136.0% | 5.1% | 7.08 |
| EGY | 8.65 | 5.90 | 6.38 | -26.2% | 8.1% | 26.95 |
| VCI | 25.78 | 26.79 | 28.77 | 11.6% | 7.4% | 9.04 |
| VG | 2.37 | 2.93 | 3.08 | 30.0% | 5.1% | 98.36 |
| WCRX | 12.04 | 20.20 | 20.18 | 67.6% | -0.1% | 19.36 |
| Total | 11,656 | 14,100 | 14,717 | 26.3% | 4.4% |
So even with the PSOOF blow up, the index is up 26.3% for the year (would be 28.3% x PSOOF). The MLM stocks (HLF, NUS and USNA) are really leading the charge. They were way oversold on January 1st as Bill Ackman had just driven his bus over them
Is Herbalife A Ponzi Scheme? Bill Ackman Says Yes | MLM Observer
The performance of those stocks is so typical of what MFI is all about. It ranked those stocks as buys, using a purely formulatic approach. They were difficult to buy, if you were reading the trade press at the time. And the point of MFI is that some of these "cheap" companies will implode, but if you use a portfolio approach, you can outperform in aggregate. It does take some courage, to put aside the noise and the visible hair on some of these stocks.
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