Tiny Titans Portfolio with a 200 Day Benchmark

On Friday I detailed AAII’s Tiny Titans stock screen.  Using the beta stockscreen123 I backtested the Tiny Titans portfolio only when the Russell 2000 was above its 200 day moving average.  The goal is to reduce potential drawdowns by only investing in the strategy when the overall market is in a long term uptrend. By adding this simple rule, the Tiny Titans screen avoided some of the significant drawdowns in 2007 and 2008.  Other potential trading strategies may work better on the individual companies in the Tiny Titans list, such as the one I detailed in-depth here which involves placing stop losses on individual positions.

The 8 year performance of the strategy results in a $100 investment turning into $349.70 versus $137.30 in the Russell 2000 (dividends excluded) when rebalanced every 4 weeks and excluding slippage/commissions:

A 5 year investment turned to $138.30 versus $100.20 in RUT.

A 3 year investment turned into $84.10 versus $77.30 in RUT.  It suffered a large drawdown in August/September 2008 and October 2007 when the Russell 2000 was briefly above the 200 day moving average but suffered large negative months.

The current list of stocks matching the criteria are:

Ticker Name Last Free Trend Analysis MktCap
VVTV ValueVision Media, Inc. 3.93 Here 127.08
ROIAK Radio One, Inc. 3.3 Here 180.6
LEE Lee Enterprises, Incorporated 3.8 Here 170.51
ATSG Air Transport Services Group 2.42 Here 153.57
LNET LodgeNet Interactive Corp. 5.99 Here 135
NAVI NaviSite, Inc. 2.89 Here 107.81
CMRG Casual Male Retail Group, Inc 3.17 Here 149.51
LBY Libbey Inc. 10.32 Here 156.41
MGPI MGP Ingredients, Inc. 7.6 Here 126.73
BIOF BioFuel Energy Corp. 2.8 Here 95.29
SPCHA Sport Chalet, Inc. 2.02 Here 28.53
SALM Salem Communications Corp 4.92 Here 116.48
IHR Interstate Hotels & Resorts, 2.25 Here 72.35
PXLW Pixelworks, Inc. 3.4 Here 45.56
BONT The Bon-Ton Stores, Inc. 8.44 Here 156.63
CVGI Commercial Vehicle Group, Inc 4.99 Here 113.51
BELM Bell Microproducts Inc. 4.57 Here 145.76
KV.A K-V Pharmaceutical Company 3.08 Here 153.84
IEC IEC Electronics Corp. 6.13 Here 54.8
TXIC Tongxin International Ltd 8.15 Here 100.32
SBSA Spanish Broadcasting System I 0.74 Here 48.06
KTCC Key Tronic Corporation 5.62 Here 56.71
NXST Nexstar Broadcasting Group, I 4.39 Here 124.81
WILC G. Willi-Food International L 6.96 Here 71.46
ARTX Arotech Corporation 1.89 Here 27.2