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Dow Jones' Hulbert Financial Digest (HFD), which monitors the performance of nearly 200 investment newsletters, recently reported that as of June 30, 2015, our 15-year annualized return was 12.3%--making The Turnaround Letter the #1 performing newsletter for that period with gains more than 5X higher than the S&P's 2.2%. The Turnaround Letter's consistent performance rankings are particularly gratifying given the longevity of our turnaround investing advice. HFD's Mark Hulbert notes, "...[T]he large majority of the newsletters we were tracking in 1980 are no longer even published."
Returning our focus to the here and now, this year's closed-out purchase recommendations offer a more current illustration of the extraordinary profit potential to be found with The Turnaround Letter's approach. As the chart below reflects, 10 of 2015's 12 sale recommendations have seen profits. Four of those stocks--GLW, WEN, FCH and BLDR--enjoyed total returns of 100% or higher, and our readers locked in an average gain of 69% with this year's closed out stock picks.
2015 Sale Recommendations
It is also of interest to note that 2015's closed out stocks were held for an average of 4-1/2 years, which is consistent with The Turnaround Letter's tried-and-true strategy. Because genuine turnarounds often take longer than you might expect, patience is especially important in this type of investing. The reason for this is simple: When a company is experiencing financial distress, its stocks, bonds and other securities typically experience a significant price drop. HFD discusses this very phenomena: "That's because almost all investors pull money out of the market--and invest money back in the market--at inopportune times. This simply is a function of human nature...."
Of course, we contrarians know that when the herd bails out, that is often the perfect time to buy in! The Turnaround Letter's nearly 30-year track record of market-beating results demonstrates the validity of this strategy. Learn more about our contrarian investment philosophy and The Turnaround Letter's closed out purchase recommendations.