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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. AAII Model Portfolios »

    Equal-Weighted ETF Helps Boost Model Fund Portfolio Return

    The inclusion of an equal-weighted S&P 500 ETF helped the Model Fund Portfolio avoid the volatility experienced by its market-cap-weighted peers.

    March 2013 | Journal

  2. AAII Model Portfolios »

    Higher Prices Prompt Rule Change in the Model Shadow Stock Portfolio

    The minimum and maximum market capitalizations have been revised upward to account for higher micro-cap stock prices.

    January 2013 | Journal

  3. AAII Model Portfolios »

    Revised Model Fund Portfolio: Benchmark Impacted by Cap Weighting

    Equal-weighted funds have historically outperformed their capitalization-weighted peers, but strong performance in two tech stocks reversed the trend this year.

    November 2012 | Journal

  4. AAII Model Portfolios »

    Adherence to Rules Helps Model Shadow Stock Portfolio's Performance

    Following a consistent, well-defined approach has helped the portfolio achieve an average return of 16.1% over the past 20 years. Plus, see the latest buys and sells.

    October 2012 | Journal

  5. AAII Model Portfolios »

    Revised Model Fund Portfolio: Combining Mutual Funds and ETFs

    The Model Fund Portfolio has been revised to take advantage of the unique strengths that mutual funds and exchange-traded funds (ETFs) offer.

    August 2012 | Journal

  6. AAII Model Portfolios »

    Despite Uncertainty, Model Shadow Stock Portfolio Still Positive for 2012

    Global and domestic uncertainty hurt returns in May, but even with the pullback, the portfolio is up 9.1% year-to-date.

    July 2012 | Journal

  7. AAII Model Portfolios »

    Model Mutual Fund and ETF Portfolios: Choosing a Benchmark Isn't Easy

    A benchmark should follow the same approach as the portfolio being measured, but the most popular benchmarks measure average portfolio performance.

    May 2012 | Journal