Ever since Burton Malkiel penned the legendary “Random Walk Down Wall Street“, there has been a debate amongst financial academia and practitioners on whether markets are efficient or not. Malkiel said that most investors would be better off “throwing darts at the Wall Street Journal” than paying a professional money manager. The Efficient Market Hypothesis has contributed to the growth of many indexes and ETF’s. Some have been good, others have been ridiculous.
Since we like to have a little fun and poke a little fun here at StockTwits we figured we would do old Burton one better and create our own index that mimics a “random walk”. We will regularly compare this index to the performance of major indexes and professional money managers. We will also use the serendipity involved with a Random Walk Index to highlight some of the awesomeness happening on StockTwits and bring some lesser-known stocks to the attention of the community. Most of all, we hope to have some FUN.
Below is the methodology and holdings. If you wish to track this index you can view a spreadsheet of the index here. If anyone knows of any good software to track this online and share it with the community please let us know!
The StockTwits Random Walk Index is equally weighted amongst a portfolio of 50 stocks. Stocks are chosen randomly and portfolio rebalanced each quarter from a universe of 1750 US Equities. The portfolio is rebalanced using closing prices on the last day of the quarter.
$DGX Quest Diagnostics Inc.
$MF MF Global Holdings Ltd.
$AMB AMB Property Corp.
$PLCE The Children’s Place Retail Stores, Inc.
$GERN Geron Corporation
$ARW Arrow Electronics, Inc.
$SON Sonoco Products Co.
$WYN Wyndham Worldwide Corporation
$NTLS NTELOS Holdings Corp.
$OCR Omnicare Inc.
$REGN Regeneron Pharmaceuticals, Inc.
$BAC Bank of America Corporation
$GET Gaylord Entertainment Co.
$ACM AECOM Technology Corporation
$OSIS OSI Systems, Inc.
$BWA BorgWarner Inc.
$POOL Pool Corp
$RNOW Rightnow Technologies Inc.
$CQP Cheniere Energy Partners LP.
$MHS MedcoHealth Solutions Inc.
$LLL L-3 Communications Holdings Inc.
$UVV Universal Corp.
$EVVV ev3, Inc.
$HPY Heartland Payment Systems, Inc.
$LIZ Liz Claiborne Inc.
$SNI Scripps Networks Interactive, Inc.
$ITT ITT Corporation
$IPXL Impax Laboratories Inc.
$AMMD American Medical Systems Holdings Inc.
$BJRI BJ’s Restaurants, Inc.
$SYK Stryker Corp.
$NKTR Nektar Therapeutics
$MA Mastercard Incorporated
$STJ St. Jude Medical Inc.
$GR Goodrich Corp.
$MSFT Microsoft Corporation
$DVR Cal Dive International Inc
$ZMH Zimmer Holdings Inc.
$BK The Bank of New York Mellon Corporation
$MIR Mirant Corporation
$UTX United Technologies Corp.
$MKC McCormick & Co. Inc.
$ENR Energizer Holdings Inc.
$DRE Duke Realty Corp.
$WLP WellPoint Inc.
$NSM National Semiconductor Corporation
$ACF AmeriCredit Corp.
$BW Brush Engineered Materials Inc.
$BPO Brookfield Properties Corporation
$CML Compellent Technologies, Inc.
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