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James Cloonan

author Image James B. Cloonan is founder and chairman of AAII. He is author of the book "Investing at Level3: Higher Returns With Minimal Risk for the Long-Term Individual Investor".

Articles by this Author


James B. Cloonan earned his MBA from the University of Chicago and his B.A. and Ph.D. from Northwestern University. After teaching for several years in 1974 he helped found and served as CEO of Heinold Securities, a brokerage firm specializing in options. After selling his interest in that firm, he returned to teaching and began the preliminary work leading to the founding of the American Association of Individual Investors in 1978 and is currently chairman of AAII.

Cloonan is the author of books and articles on investing and writes the Model Portfolios column for the AAII Journal. He created and manages the Model Shadow Stock Portfolio, which has realized an annualized return of over 15% for the past 23 years.

Cloonan has served on several industry and regulatory panels, including the Consumer Advisory Council of the National Futures Association, the Advisory Panel on Securities Markets and Information Technology of the Congressional Office of Technology Assessment, the NASD Special Committee on the Quality of Markets, the New York Stock Exchange Panel on Market Volatility and Investor Confidence, the Chicago Mercantile Exchange Financial Instruments Advisors Committee, the New York Stock Exchange Individual Investors Advisory Committee, and The Consumer Affairs Advisory Committee of the Securities and Exchange Commission.

He lives with his wife Edie in Chicago.

Articles by this Author

  1. Matter of Opinion »

    Model Shadow Stock Portfolio Keeps Chugging Along

    As of the end of February 2006, the Shadow Stock portfolio is up 5.4% year-to-date, compared to 2.9% for the S&P 500. Although the market most recently has been up, the choppiness that has marked 2005 is continuing into 2006, and continues to affect the model portfolio as well as the general market.

    April 2006 | Journal

  2. AAII Model Portfolios »

    Model Fund Portfolio Update: No Complaints for 2005

    Last year was not a great year for the stock market, but when a poor year still has positive returns, we can't complain too much--especially if you can outperform the market at a lower level of risk.

    February 2006 | Journal

  3. AAII Model Portfolios »

    Model Shadow Stock Portfolio: All-in-All, A Very Good Year

    The AAII Model Shadow Stock Portfolio took a bit of a breather in the last three months, but through November it remains at an impressive 18.8% compared to single-digit returns for the S&P 500 and small-cap index funds.

    January 2006 | Journal

  4. AAII Model Portfolios »

    No Summer Doldrums for the Shadow Stock Portfolio

    The Model Shadow Stock Portfolio has found enough fuel to jet through the summer doldrums of 2005, rocketing to a 19.1% return over the quarter, while year to date it is up 17.8% compared to 5.4% for the Vanguard Small Cap Index fund. Our quarterly review includes a list of changes to the portfolio over the last quarter, as well as a complete listing of the holdings.

    October 2005 | Journal

  5. AAII Model Portfolios »

    Model Fund Portfolio Update: 2005 Mid-Year Review

    The Model Mutual Fund Portfolio is slightly ahead of the S&P 500 for the first half of this year, but significantly ahead over the last 12 months. A mid-year look at the portfolio, how it has fared, and what changes have been made.

    August 2005 | Journal

  6. AAII Model Portfolios »

    Shadow Stock Portfolio Still Leads as Market Runs Out of Gas

    While the Model Shadow Stock Portfolio is starting to run on fumes alone, it still leads the market. A mid-year look at the portfolio--how it has fared, and what changes have been made.

    July 2005 | Journal

  7. Matter of Opinion »

    Model Shadow Stock Portfolio: A Step Ahead of the Market

    Feature: A performance update for the Shadow Stock Portfolio shows that the portfolio is still one step ahead of the market.

    April 2005 | Journal