Catwalk to Profit With the Gisele Bündchen Index - TheStreet

Catwalk to Profit With the Gisele Bündchen Index

It's substantially outperformed the Dow the past three months.
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Gisele Bündchen was the top-earning supermodel in 2006 with $33 million, according to


magazine, and the stocks of companies connected to her pursuits have had a good 2007 so far.

Fred Fuld with

has developed a series of celebrity stock indices, specializing inactresses, singers and supermodels.

The Brazil native Bündchen is connected to several publicly traded companies, and Fuld has developed a Gisele Bündchen Stock Index, which has been implemented at


The Bündchen Index was up 15% during the last threemonths, substantially outperforming the

Dow Jones Industrial Average

, which was up 8.2%.

So how much influence does a celebrity have on a company's sales? Here is an example. When C&A Brazil, a division of


, which is an international chain of clothing stores, hired her to star in theirtelevision commercials, the company's revenue increased by 30%.

Bündchen has been the face of numerous advertising campaigns, including


(AAPL) - Get Report

, appearing on the "Get a Mac" advertisements to promote its new line of Macintosh computers.

Is that why Apple continues to make new all-time highs? Apple has a P/E ratio of 45.5 and a P/E-to-growth ratio of 1.76.

Apple is also owned by

George Soros

, one ofthe world's most successful hedge fund managers. Soros also owns suchfashion-company stocks as



, the famous handbag purveyor with a P/E of 29.7 and a PEG of 1.43, and the department store company,

Bon-Ton Stores


, which has a P/E of 18.9 and a PEG of 0.73.

Although Victoria's Secret recently announced in May that Bundchen had ended her contract with the lingerie retailer, she had been one of its main models for several years and the primary face for many of its advertisingcampaigns. Victoria's Secret is owned by

Limited Brands


, whichhas a P/E of 17.3 and a PEG of 1.25. Limited shows up in the portfolioof

Bill Nygren's Oakmark Funds

, of which the flagship fund, Oakmark 1, has had annualized returns of 9.93% over the last three years.

Nygren also owns


(MCD) - Get Report

, which has a P/E of 17.5 and a PEG of 2.13. Bündchen was supposedly discovered by a modeling agent while eating a Big Mac at a local McDonald's when she was 14 years old.

Nygren's funds also owns

Time Warner


. Bündchen, wearing a Pradabikini and Marc Jacobs shoes, appeared on the cover of


magazine,which is owned by Time Warner. The stock has a P/E of 13.2 and a PEGof 1.56.

Bündchen also has been a celebrity endorser for Ralph Lauren, which is owned by

Polo Ralph Lauren

(RL) - Get Report

. The stock has a P/E of 26.5 anda PEG of 1.63. It shows up in the portfolio of the

Baron Asset - Barax

fund, which has had an average return of 16.82% per year for the last three years.

Baron, which specializes in small and medium-sized companies with undervalued assets or favorable growth prospects, owns a couple of other celebrity-type stocks, including

Wynn Resorts

(WYNN) - Get Report

, with a P/E of 14.8 and a PEG of 1.27, and

Vail Resorts

(MTN) - Get Report

, which has a P/E of 37.2 and a PEG of 2.47.

For a complete list of all the stocks in the Gisele Bündchen StockIndex and why such stocks as

Vivo Participacoes

(VIV) - Get Report



(NWS) - Get Report

are connected to her, check out the

portfolio at


At time of publication, Fuld was long Apple.

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