9/7/07 new tranche

Been very busy lately so it's been tough to do updates. Not to mention the fact the MFI fund continues to fibrillate along with the market.

Sold the 9/7/06 tranche on Friday. It was my most successful tranche so far, primarily thanks to WNR and FTO, and no stinkers. The final results were:

DEBS 10.65% gain
FTO 40.03% gain
KG -9.52% loss
WNR 139.99% gain (placing it in 2nd so far, since PNCL has the one year record at 144.65%).
(this tranche also previously included SCC which had a cash merger and resulted in a 1.09% loss very quickly).

Total tranche return: 36.04% vs. VFINX 16.29%.

Because they were still in the MFI list, I held on to FTO and KG. I was sad to let WNR go, because I personally believe it still has potential. I even checked to see if it was in the top 100 over $50M (since I only grab the top 25 over $50M for my random picking method). But, it wasn't. And so away it goes. I continue to follow the MFI method to the letter of the book. The other sad thing, of course, was that at its peak, WNR was at a 200% gain. Ah, July and August. It was perhaps an appropriate kick in the nuts that the morning I sold these stocks the market had already declined another 1%. Sure, I was able to buy the next tranche after that decline, but on principle it still sucks.

The new tranche consists of the following stocks:

FTO
KG
BPT
HSII
TZOO

Weighted gain since inception = 11.74% vs. S&P 500 = 7.76%.