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The objective of this study is to determine how well concentrated portfolios of high quality stocks perform under highly volatile market conditions. Three different portfolios of 30 stocks each were established based on market cap: (1) mega cap (2) large cap and (3) mid cap. All of the stocks in each portfolio had Standard and Poors quality ranking of A-, A, and A+. One hypothesis tested was that concentrated portfolios of high quality stocks generate excess returns (alpha) when compared to a fully diversified portfolio of stocks such as the S&P ETF SPY. A second hypothesis tested was that portfolios of quality stocks generate better risk adjusted returns relative to the broad market. Quarterly and annual data are used for the performance comparisons.

Publication Date


Project Designation

Independent Research

Primary Advisor

Trevor C Collier

Primary Advisor's Department

Economics and Finance


Stander Symposium poster


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The Performance of Concentrated Portfolios of High Quality Stocks in Highly Volatile Markets: The 2008 - 2013 Experience