History

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Date Index Overall Return Annualized
7/31/96 100.00
9/22/17 1090.61 990.61% 11.96%

The 2 for 1 index® was developed around the principle that the stocks of companies that have recently announced a stock split will outperform the stocks of similar companies that are not splitting, over a period of 2 to 3 years. The Index was inspired by an article in Forbes magazine titled “A Strong Signal” by Mark Hulbert.  In this April 22, 1996 article, Mr. Hulbert discussed a study undertaken by David Ikenberry, then at Rice University, where the performance of stocks that split is measured against the market performance of similar non-splitting stocks. What this research in the Ikenberry study uncovered is that the stocks of companies that have announced stock splits perform measurably better than the market over the 2 to 3 years after the announcement. After reading this research, Neil Macneale began working on the methodology that is still the backbone of the Index today.

The Index was created in 1996 and has been the subject of the 2 for 1® newsletter ever since. The 2 for 1 portfolio followed in the newsletter closely parallels the performance of the index but is slightly different due to transaction costs and differences in the rebalancing methodology.

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