My interest is in scanning 401k portfolios to image the efficient frontier and highlite portfolios that have high risk adjusted returns. The portfolio with highest Sharpe ratio will appear in the scan image for each 401k plan posted.
Tuesday, August 23, 2011
Potash Corp. 401k (ESP) Plan PSDS Scan 12-31-2010
The Potash 401k Plan is dominated by company stock POT which has an incredible 5yr APR = 42.56% with a positive Sharpe ratio of 0.44. Last year it was "only" 32%. The Balanced portfolio invested 8.5% of the portfolio in the stock and the employees have over 1/3 of their portfolio in the stock. The 401k Plan trustee is Fidelity and the 2 largest holdings of the Balanced portfolio are FRTXX a money market fund and FFXSX a short-intermediate term governement bond fund. This is a good plan and an extraordinary company stock the last 5 years. Next year should be interesting.



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