Need to Know: This portfolio has outpaced the S&P by a factor of four this year, and here are its best stock picks

Our call of the day comes from Fundstrat Global Advisors, which has an unusual portfolio — Granny Shots — that includes the best of the best stock picks from its portfolios. It has just added some new names. Read More...

"Granny shot" stocks. — “Granny shot” stocks.

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Our call of the day offers up stock ideas from a portfolio that has returned 34.1% year to date, versus 9.4% for the S&P 500. The so-called “Granny Shots” portfolio from Fundstrat Global Advisors gets its name from National Basketball Association legend Rick Barry, who shot free throws underhanded, “granny style,” for a career percentage of around 90%.

As Fundstrat founderThomas Lee explains, the “Granny Shots” portfolio is about “the best of the best” of their portfolios — stocks that have an attractive long-term thesis, though at times gain traction slowly, therefore require patience. Since its inception in January 2019, the portfolio has been beating the S&P by 2,470 basis points.

Note, that the granny portfolio has gotten a boost from some of those all-star tech performers this year — Apple, Alphabet GOOGL, +0.15%, and Microsoft MSFT, +0.65%.

Fundstrat rebalanced the portfolio for the third quarter to add five new names and deleting six. Lee highlights these 35-year charts to illustrate how these stocks might be ready for a revival. Among the new additions is semiconductor equipment maker KLA Corp. KLAC, +2.51%.

Also included is global media group Omnicom OMC, -1.10%, which Fundstrat notes has suffered some big “headwinds” from the pandemic this year. Another pick is WW Grainger GWW, -1.15%, an industrial that plays into the idea of an economic rebound:

They also added chip makers — Intel INTC, -0.09%, which appears to be “shaking off its 2020 setbacks,” and Qualcomm QCOM, +0.60%, which seems like it is “waking up from a 20-year slumber.”

As for those leaving the portfolio, online travel group Booking Holdings BKNG, -3.47%, multinational Emerson Electrics EMR, -0.99%, hardware and software company HP HPQ, -0.75%, automotive parts supplier BorgWarner BWA, -1.19%, fertilizer maker CF Industries CF, -0.23%, and consumer goods group Procter & Gamble PG, -0.19% are out.

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