Each quarter elEconomista collaborates with almost 50 investment firms to create a portfolio of ten stocks based on company fundamentals. 75% of these companies also appear on the Ibex 35. Until June, the following companies will appear on the index: Repsol, Técnicas, OHL, Telefónica, BBVA, Dia, Ferrovial, Acerinox, Amadeus and Inditex.
Its six-year track record is the best thing going for the Eco10. After going up in value 2% between June 2006 through June 2012 (by way of comparison, the Ibex fell 23%), the Eco10 has clearly shown in the first part of the year that it has enough gas to keep beating the Ibex. It was able to beat the Ibex by 8.7% over the past four months after totaling 11.77% in profits compared to the Ibex's 3.08%.
The accurate reccomendations that a group of almost fifty investment firms makes when it creates the Eco10 is the key to the index's success. Repsol, Técnicas Reunidas, OHL, Telefónica, BBVA, Dia, Ferrovial, Inditex, Acerinox and Amadeus were selected recently to take advantage of market opportunities, avoid volatility and make the Eco10 a refuge for avoiding possible market collapses resulting from a restructuring of the Spanish banking sector, the Cypres bailout and the United States's fiscal cliff and also its higher debt ceiling.
OHL and Dia have performed well for Eco10 investors since the beginning of the year. Both companies have spiked more than 20% between January and April, which allowed Juan Miguel Villar Mir?s company to post 2007-level results with even more room to grow 6% to 30.94 euros per share according to a consensus view from FactSet. Dia hit historic highs in February when it surpassed 6 euros per share.
Amadeus and Repsol also worked out well for investors who modeled their portfolios after the Eco10 this year. These companies rose more than 15% over the past four months, and Repsol enjoys the strongest buy reccommendation from market analysts. Only Acerinox, because of falling basic materials prices following news of slow growth in China, and Inditex, which was overbought after rising 67% in 2012, posted negative performance from January through April.
