SIF Portfolio Review, Plus PSN, GOG, IGR & PAF

7th Sep '16 by Roland Head

7 comments 9975 reads

As the summer ends, results season is drawing to a close. The outcome for the SIF Portfolio has been fairly positive, in my view, with several H1 laggards making up lost ground over the last few weeks.

The portfolio now contains thirteen stocks, so is well on the way towards my target of 15-20 holdings. Monthly rebalancing will start in late October, when my first holdings reach six months of age. Ahead of that, I’m going to review results from some of the portfolio’s biggest movers, and ask how well the SIF portfolio is matching its brief. This was:

Affordable growth. A blend of value, growth, quality and momentum. Hopefully with an emphasis on managing risk through diversification and the avoidance of outliers.

Here’s a snapshot of how the portfolio looked after markets closed on 6 September:

The story so far

Alongside the official Stock in Focus Portfolio fantasy fund, I also maintain a portfolio in the Folios section of my Stockopedia account that mirrors the fantasy fund. The benefit of this is that I get to benefit from a greater level of reporting and analysis.

Here’s a screenshot from the Analysis tab of the portfolio, which give an idea of the overall characteristics of the SIF portfolio:

The dark blue lines represent the SIF portfolio, the pale blue is the market. These show that the forecast P/E of the portfolio is below the market average, while forecast earnings growth is above average. These combine to give an attractive PEG ratio of 0.9. I’m also very happy with the 3.5% portfolio yield, which is well covered by forecast earnings.

Given my target profile of affordable growth, I’m pretty happy with this profile. Although the portfolio is still too young to draw any conclusions, it doesn’t contain any stocks that make me uncomfortable. Performance so far has lagged the benchmark FTSE All Share, but with so few stocks in the portfolio at first, this was to be expected (in my view).

Results review

Eleven companies have issued trading updates or results since they were added to the portfolio. I’m not going to try and cover them all in the space of one column -- instead I’ll focus on the best and worst performers so far.

Go-Ahead Group (-19%)

My decision to add bus and train operator Go-Ahead to…

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Howard Adams

7th Sep '16

Roland

Many thanks for the interesting update. I am looking forward to your October rebalancing with interest.

I hope you will explain, in some detail, how you approach assessing the status of the holdings with regard to your criterion, and then your rationale with regard to your decisions, be they to sell whole holding, slice, hold or add to. As I am keen to learn ideas about this aspect of portfolio management. Particularly as your investing objectives seem to align closely with mine (I hold 7 of the same stocks as your SIF).

Regards
Howard

Paul Flanagan

Hi Roland,

Good work with the portfolio.

I was wondering how you managed to chart the Performance vs FTSE Allshare? Is there an option to do this in the folio section?

Paul

Roland Head

Hi Paul,

Thanks for the comment. All Fantasy Fund portfolios are tracked against a benchmark, which I've chosen to be the FTSE All Share.

This functionality isn't currently available in the Folios section of Stockopedia. That's one reason why I run this portfolio as both a Fantasy Fund and in the Folios section of my account -- both offer different analytics. The Fantasy Fund is also public, so I can share it here.

You can find out more about the Fantasy Funds here:
http://www.stockopedia.com/fantasy-funds/

My SIF portfolio fantasy fund is here:
http://www.stockopedia.com/fantasy-funds/stock-in-focus-portfolio-6449/

Hope this help!

Roland

Howard,

Thanks for your comment. In essence this is a rules-based portfolio which uses a screen to pre-select shares. You can see the full set of rules I work to here:

http://www.stockopedia.com/content/introducing-the-stock-in-focus-portfolio-128456/

When it comes time to rebalance, I will sell shares which no longer qualify for the screen. The only situation in which I would top slice is if a share doubles during the holding period.

I'm basically running this portfolio in a similar way to the Stockopedia Guru Screens. The only difference is that I am allowed a certain amount of freedom to select which stocks to buy and pursue a minimum level of diversification. I will also start rebalancing after six months, rather than quarterly.

Finally, I should also reiterate that this is not my personal portfolio, it is a model portfolio I'm running and developing for Stockopedia. I do own some stocks in the portfolio (which I disclose) but not all.

I hope this makes things a bit clearer.

Regards,
Roland

Rolan,

Thanks for the reply. It's a shame the feature isn't available in the folio section as this is where I keep my real portfolio. I will lodge a request for it as it is a good feature.

Paul

8th Sep '16

Roland

Thanks for the rapid response and explanation, I look forward to seeing what occurs in October.

Regards
Howard

stanislawski

9th Sep '16

Seconded.

SIF Portfolio review, plus PSN, GOG, IGR & PAF

The story so far

Results review

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Roland Head

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