What are we looking for? We're at the half-way point of The Globe and Mail's annual stock-picking contest, so let's check in to see how our contestants are faring. With European debt woes and economic worries dogging the market, stocks took a turn for the worse in the second quarter and eight of the 12 picks are now under water. There's also been a change in the lead since our last update in April.
Who's in first? As of June 30, Ram Balakrishnan has retaken the lead in The Globe's My One And Only Stock Picking Contest. The Canadiancapitalist.com blogger chose Warren Buffett's Berkshire Hathaway after the stock badly trailed the S&P 500 last year, betting on a rebound. His instincts were correct: So far in 2010, Berkshire's B shares - which split 50-for-one in January - are up 21.3 per cent, or 23.1 per cent in Canadian dollars.
Mr. Balakrishnan also led the pack at the end of the first quarter, before he was temporarily overtaken by Vancouver money manager Adrian Mastracci. Mr. Mastracci's pick, Citigroup, is up 15.3 per cent in Canadian dollars, putting him in second place.
The rules Each contestant can pick one stock, income trust, American depositary receipt or exchange-traded fund listed on a major exchange in Canada or the United States.
For Canadian stocks and ETFs, the minimum market capitalization is $100-million. For U.S. securities, it's $1-billion (U.S.)
The security that generates the highest percentage total return (including reinvested dividends and distributions) for calendar 2010 is the winner. All picks are converted into Canadian dollars. The prize: a Globe and Mail coffee mug - and bragging rights.