Friday, May 10, 2002

Stock-Picking Contest Update

NEW YORK - Each autumn, we ask 17 Wall Streeters to try to beat the market over the coming year with one stock they love--or hate. We have 12 contestants who go long, while five finger a stock for a short sale. Successful participants are invited back for another year.

At the current contest's halfway mark, the bears are in trouble. Since the first of November, the S&P 500 has sagged 1%. No such luck for the short picks, which are up an average 33% since that time.

The bulls don't exactly have the right to gloat. As a group, their picks show a 5% decline. Were it not for one pick, however, the bulls would be ahead 4%. First-time contestant Michael Mauboussin, chief investment strategist at Crédit Suisse First Boston, bet last fall that Enron would either stage a recovery or see a takeover premium from a proposed merger with Dynegy. At the time, Enron shares traded at $12.

Full story at Forbes.com