2015/16 Gains using Stockopedia

12th Mar '16 by Paul Flanagan

16 comments 14161 reads

I came across Stockopedia website last month after reading 'The little book that beats the market' by Joel Greenblatt.

After watching all the Stockopedia youtube videos I decided to cash in all my investments and create a new portfolio using the stockrank screens. I'm very impulsive.

I also created 2 other test portfolios to see how my real investment compares to the worst 10% Stockranks and the top 20 stock talked about on LSE bulletin board. So far my real portfolio is performing better.

Today I worked out that in the tax year 2015/16 my previous portfolio made 8% return. 6% CGT, 2% dividends.

What I'm wondering, is what gain have you made by using Stockopedia?

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About the Author

Paul Flanagan

Premium Member

16 comments

Investor & Trader

14th Mar '16

Early days for me, I started 2 months ago and have just turned back into profit since the blip at the beginning of the year, this needs time to harvest but im here to keep watering....

gus 1065

14th Mar '16

Similar experience to gpacker with my 2016 Naps portfolio of 25 stocks which I purchased during December 2015. All 90+ Stock Rankings and similarly high quality and momentum metrics. Up about 4% by year end, down by 8% by late Jan and currently back up by about 1%. Interestingly, the range within the portfolio is quite large, i.e. +40\- 20% from best to worst.

I've also been running a parallel portfolio that I described in a posting in late December under the moniker of "Guilty pleasures", being comprised of a selection of fairytale story stocks (in many market commentators' eyes at least). This has been very volatile, down 15% at one point but currently up about 23% on the back of a sharp rebound in some of my oil and mining stocks.

http://www.stockopedia.com/content/guilty-pleasure...

Jury still out on which of my various stock picking strategies I prefer but more than happy with the analysis that Stockopedia allows me to run and the quality of the commentaries in the various discussion threads.

Gus.

Edward Croft

14th Mar '16

There are some subscribers who have been running purely mechanical portfolios based on the StockRanks.

The results in 2014-2015 have been very impressive from those I've seen - have a look at Grinder Trader's very open blog of results here http://www.grindertraderuk.com/category/stockopedia-portfolio/ - there are a few others out there on the web.

I don't like to crow about my own result.... but I have run a long/short portfolio based entirely on the StockRanks and it did better than the NAPS in 2015. Unfortunately it's made no profits now for about 6 months. The desire to do something is quite great, but I've been holding back. I've another rebalance due this month.

The 2016 NAPS are down about 3% year to date - in stark contrast to 2015 which got off to a flyer. It's important to stress that early 2015 was quite exceptional for the StockRanks. It's been lean pickings for some time.

Rusty2

14th Mar '16

I've had fairly mixed results since joining last year. The 2015 Naps had an excellent return but since June 2015 I have set up various dummy NAPS and none have returned more than about +2%, most are down slightly, the value Naps is a touch ahead but they are all very close. But then the market is down around 10-15% depending which index you use. If you look at the overall Stockopedia results for 90+ you will see there is not a steady return: http://www.stockopedia.com/stockranks/performance/

Its up 40% then flat for about 1 year then up 30% and then flat for last 7 months.

Paul Flanagan

14th Mar '16

Thanks for all the comments.

Gus it's good to see your portfolio is still positive after the market correction in January. I only took one hit when selling my portfolio. Woodford Patient Capital cost me 13% : ( Guess I should have been more patient!!

Edward in terms of rebalancing it would be helpful if you could do a webinar or youtube video showing how you address it in your own personal portfolio. I found the previous videos very insightful.

vik2001

15th Mar '16

my real life NAPS is down 4% after starting it in January this year. I keep wondering if a rebalance now would make a difference as things have settled down.

I also set up a dummy NAPS in March as the storm has settled and that's just turned into +1%

Rusty2

15th Mar '16

I think its too soon to rebalance. If you have a bad share then cut it out and replace it. I think with NAPS there is often one bad one like Alternative Networks (LON:AN.) Entu (UK) (LON:ENTU), Amino Technologies (LON:AMO), Lamprell (LON:LAM), Indivior (LON:INDV). I think your performance is just following the markets.

Don't trade too much, remember each sell and buy will cost you about 5%, maybe more on smaller companies.

vik2001

15th Mar '16

yes I removed AN and replaced with dotdigital.

Rusty2

15th Mar '16

Why did you choose dotDigital (LON:DOTD).? Its not in the 90s?

vik2001

15th Mar '16

yes its not in the 90s but for a tech company I see they have the potential for good growth, so I chose it on that basis and a few others. I already have Computacenter to in the Naps also.

Rusty2

15th Mar '16

I see. I did hold dotDigital (LON:DOTD) until recently but became uneasy with the large directors share sales. So I took my profits.

bunkerdoo

9th Aug '16

Ed could you explain how you use the StockRanks in order to buy/sell. In particular the sell side, which I presume is a form of hedging. Is diversifying a portfolio across sectors, markets, countries and assets the best form of hedging? When trading a portfolio within a single index say the FTSE100 is selling the index a practical method of hedging, given that their is a timing issue. Your thoughts would be greatly appreciated.

lucien2k

9th Aug '16

I rebuilt my portfolio at Christmas using Stockranks, 14 stocks including 3 that I already held. I opened slightly wider than the NAPS and ignored some sectors that I felt had strong inherent weakness.

So far on the year I am up about 30%, I sold one of the Stockranks stocks. NWF (LON:NWF)
Of the others I am down 8% Computacenter (LON:CCC) and 3% on Dart (LON:DTG) but the others are all up, and in some cases over 30%.

My returns are a little skewed because I already had a big chunk of Boohoo.Com (LON:BOO).

fahimc

9th Aug '16

I started several dummy portfolios based on different investing styles. I invested £100K in each portfolio . Investment date was 08/12/2015. The screen on screen is the worst perfoming at £88K. To date the NAP is worth £96K. The best portfolio is my Quality dividend portfolio £121,000 not including the DY of 6.1%. I think I have have been lucky as the most gains I made was from Ferrexpo. The screen was:
1. Quality rank >80%
2. Yield >4%
3.Market cap >50m
4. Stock Rank >90%
5. F-Score >6

I change the shares once the stock rank fall below 80%.

Edward Croft

9th Aug '16

The NAPS 2016 are up about 2.5% now year to date. Not stellar... pretty much tracking the FTSE Small Cap index but behind the FTSE 100 Equal Weighted index which is up about 7.5%. The regular FTSE 100 has done very well this year (up 12%) due to the flight to safety/foreign earners - but it's lagged for years.

What we're lacking in the UK is a good equal weighted benchmark that is relevant for private investors. Maybe we should launch one internally. At the moment I use the top decile StockRank performance as my benchmark vs the NAPS. The top decile is down about 0.8% year to date, so the NAPS portfolio is outperforming.

In general, this has been a tough year for stock market investors. There's a lot of churn in the market... leadership is shifting and what's worked for the last few years has taken a pause. This is healthy stuff and was overdue - it's important to remember that it's completely normal. It's also important to keep a handle on risk and be pro-active about remaining exposed to the right kind of stocks. I've noticed that it's not been the big losers that bounce back (e.g. Alternative Networks). Cutting losers remains as valuable as ever.

@bunkerdoo... regarding using the StockRanks on the sell side. I'll have to do that in a separate article. Not much time today.

iwright7

10th Aug '16

Ed,

I another recent article you refer to a High Flyers screen (High Q+M and deliberately Low V) which tends to select more expensive high PER growth stocks, whereas Stockrank Naps pick above average Q+V+M stocks with moderate PERs.

I personally like both screening approaches and whilst 2015/16 SR NAP returns have been generally quite flat for the last 12 months the High Flyers approach has done well for me over the same period.

Because no one screening technique out preforms every year I think there is a case for a foot in both camps, to even out portfolio performance. Perhaps 20 Stocks with 2 stocks from each sector, one a High Flyer and one a high Stockrank.

Both techniques use Stocko screening data and would be impossible without Stocko QVM number generation. The Stockopedia ranking data has transformed my investing performance in highlighting cheap and not so cheap improving companies, so a very big thanks to all the Stocko team. Ian

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2015/16 Gains using Stockopedia

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Paul Flanagan

16 comments

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