LON:EMR | My StockRanks £20k Portfolio 1 Year On (Part 2) - The Rebalancing

27th Oct '15 by GrindertraderUK

10 comments 21441 reads

Introduction

My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing, is part of a series of posts about adopting the Stockopedia StockRanks into a £20K starting cash balance portfolio.

The following links provide the journey so far with the most recent first.

As followers of this series are aware the portfolio is now 12 months old and it is now time to rebalance the portfolio.

I have to admit that I have found the process of rebalancing a bit of an emotional struggle. By sticking to the rules I have had to sell many of the stocks that 'I love' . This was something that I struggled to accept. Twelve months ago I had selected some stocks that as an 'old fashioned stock picker' I knew quite well and felt a little confident that they would do well. The high StockRanks seemed to me to confirm my confident biases.

This year I have found less stocks to choose from in my screeners as quality stocks have become high in value. The real test for me has been my emotions and thus sticking to the rules.

I created a you tube video here, where you can see me starting to tackle the rebalancing. in this video my lack of confidence in my new selection is evident. But that is the challenge. To trust the StockRank system, stick to the rules and keep emotions at arms length. So this is what I have done.

My Rules

The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66)
Dividend Yield 12 month rolling > 0
Market Cap > £20m
Spread (bps) < 500
Sector includes - One screener for each sector (10 sectors in total)
Rebalance every 12 months *new rule

Exit Plan

A stock will leave the portfolio when it goes below StockRank 90 and a more suitable qualifying stock can take its place. Once the Stock is part of the portfolio the Quality, Value or Momentum figures may go below 66. That is ok as long as the Stock remains above 90 at the time of rebalancing.

The Portfolio

So here it is, my portfolio rebalanced and…

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Rusty2

8th Dec '15

Hi Ian,
Just watched your video, this was published when I was away so I missed it. Yes I have similar feelings about year 2 as you do but time will tell. I see Finsbury Food (LON:FIF) is back upto 90 now. I thought when comparing 2 or 3 shares you would have used the comparison feature on Stockopedia, I know it does not have all the details but its a useful quick comparison tool. Another thing I don't really bother about market sector averages, because say Financials this is high because of several large banks which I doubt will be included, it also does include some housebuilders and property companies. Manx Telecom is ok apart from pension deficit. Epwn I do hold but I'm really not sure about it, after what happened to Entu, I'm a bit nervous and may sell soon. Think BKG is a good choice and has gone up recently. I did a NAPS the other day and I think 10/20 top ranked ones were Industrials.

Redrichmond

21st Mar '16

Hi ian, how is your portfolio going. Its been a bit hit and miss for me over the last few months but up 9% overall

Regards
John

GrindertraderUK

22nd Mar '16

Hi Redrichmond.

Sorry for not replying sooner, as I have been away working

The portfolio value excluding dividends since i last reported in October stands at £28,241 so up a little but mostly flat. I haven't added the divi yet when I get round to reporting it properly next October I'll print out a divi statement from Halifax and add them in.

Looking at the FTSE All Share at same period, it is down around 2.7% so I can't complain

Good luck in your portfolio. The fact my StockRanks Portfolio is holding out well and with very little attention on my part is satisfying.

best wishes Ian

5th Jul '16

Hi everyone. In view of the BREXIT vote had a quick look at my StockRanks 20K Portfolio (real account).

Currently at £28857 it is -0.68% from last October 2015 (taken from actual halifax statement)

Full review will be carried out during October 2016 on it's 2 year anniversary.

not bad considering black Friday, BREXIT, and everything else thrown at us since then

regards
Ian

troytea

Thanks Ian,

It looks like the stock ranks portfolio is holding up well. I'm about to set one of my own up so it is useful to read stories from those who have done this already

Edward Croft

I have a NAPS portfolio update due this week. Will be interesting reading too !

As with the whole Stockopedia community I look forward to the NAPS update. Fingers crossed it has held up well too.

regards
Ian

vik2001

6th Jul '16

I invested in January £33,000 into a real life NAPs portfolio. its down by £3000 as of today

The biggest winner being H&T

The biggest looser being Inland Homes

ls2g08

I did a NAPS style portfolio, but 50/50 split between US and UK stocks. It is up 10% to date. Best performer Central Garden & Pet Co up 81%, worst Robinson down 24%.

AnonymousUser40634

14th Jul '16

Hi Ian, I was curious to analyse the effect of just your re-balancing exercise - i.e. the delta between just your new stocks and those you swapped out. So I did.

Watching the video I was not too sure about a few decisions made, such as dropping JD which was doing really well (and has done well since incidentally). But I'm pleased to announce that given an equal weighting (I don't know how you actually weighted them in reality):

The 4 stocks you sold have on average......gone down 6.85% since 26-Oct-2015
Whilst the 5 stocks you bought in have.......gone up 9.04% on average since 26-Oct-2015!

A VERY respectable ~17% difference as a result of your re-balancing these stocks! Pretty amazing actually given the market conditions.

It goes to show that leaving emotions for individual stocks aside and following a rules based approach really can work!

My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing

Introduction

My Rules

The Portfolio

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About the Author

GrindertraderUK

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