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Supermodels Outperform the Dow - 4220 views
Gisele Bundchen is the world's richest supermodel. Heidi Klum is the second-wealthiest. Actress and former model Angelina Jolie is the third-richest celebrity in the world after Oprah Winfrey and Tiger Woods.
In addition to their wealth and fame, these three celebrities have something else in common: celebrity stock indices, based on the companies that these women are connected to in some way, such as by an acting role or as a celebrity spokesperson. The indices, created by
Stockerblog.com, have been updated and compared with the Dow Jones Industrial Average. And all three have outperformed the Dow over the last six months.
Over the last six months, Gisele Bundchen's index was up 1.6%, Heidi Klum's index was down only 0.7%, and Angelina Jolie's index was down 10%, yet all were doing better than the Dow, which was down 10.3%. These are price-weighted index, similar to the Dow Jones Industrial Average, and dividends were included.
One of the stocks in the Gisele Bundchen Index is Polo Ralph Lauren (RL) for which Bundchen has been an advertising campaign face. The company provided the official opening ceremony parade outfits of the U.S. Olympic team. It is the first luxury retailer to launch a mobile commerce site, offering shopping by cell phone. The stock has a P/E of 18 and a PEG of 1.24, and it pays a yield of 0.3%.
Polo Ralph Lauren is owned by the Baron Asset Fund, a Morningstar-rated four-star fund managed by Ronald Baron. The fund has had an average annual return of 18.86% over the last five years. Baron also owns Wynn Resorts (WYNN), with a P/E of 28 and a PEG of 1.47; Charles Schwab (SCHW), with a P/E of 11 and a PEG of 1.05; and Vail Resorts (MTN), with a P/E of 22 and a PEG of 1.6.
A stock in the Heidi Klum Index is Limited Brands (LTD), owner of Victoria's Secret, where Klum reportedly received a $3.8 million-per-year contract. The company recently reported that same-store sales dropped a less-than-expected 5% in July. The stock has a P/E of 9, a PEG of 1.02 and a yield of 3.2%.
Limited is owned by Okumus Capital, founded by Ahmet Okumus in 1997. Okumus uses the Graham and Dodd style of value investing. His first hedge fund, Okumus Opportunity Fund, has had a compounded return of almost 35% net per year since inception. Okumus also owns Cadence Design Systems (CDNS), with a P/E of 12 and a PEG of 14.92; CA (CA), with a P/E of 23 and a PEG of 1.47; and Quest Software (QSFT), with a P/E of 25 and a PEG of 1.15.
One of the stocks in the Angelina Jolie Index is Viacom (VIA.B), due to her staring roles in Lara Croft: Tomb Raider, its sequel and Beowulf, which were distributed by Viacom's Paramount Pictures. Viacom's DreamWorks division recently received criticism for its portrayal of the mentally disabled in the movie Tropic Thunder. The stock has a P/E of 10 and a PEG of 0.82.
Viacom is owned by Citadel Investment Group, one of the largest hedge funds in the world, founded by billionaire trader Kenneth C. Griffin. It had an annualized net return of about 25% from inception through 2006. Citadel also owns Wal-Mart Stores (WMT), with a P/E of 18 and a PEG of 1.45; Kroger (KR), with a P/E of 17 and a PEG of 1.69; and Cigna (CI), with a P/E of 13 and a PEG of 0.89.
For a complete list, check out the Supermodels Indexes portfolio at Stockpickr.com.
Posted on Aug. 19, 2008