2013
A very good year for equity markets in general with really only emerging markets not joining the party. Japan lead the way, up 56%, followed by the US S&P 500 Index +28.4% and then European markets with the German DAX up 24%, Spanish IBEX +19.9% and the Italian MIB +17.5%. At the other end of the scale Brazil fell 16.4%, China -8.0%, Russia -5.5% and Korea -2.2%. In the UK the FTSE 100 rose 18.3% but was outshone by the FTSE 250 Index which was up 33.0% and FTSE Small Cap, up 30.4%. The wider FTSE All Share Index returned 20.8%. The AIM market rose 22.4%, benefiting massively during the second half from its constituents being allowed to be held in ISA accounts for the first time.
The JIC portfolio returned 41.5% over the year and recorded a positive return in every month but two; the FTSE All Share had negative returns in three of the 12 months. Statpro plc’s Revolution risk measurement system records the annualised volatility for the JIC Portfolio at 9.6% in 2013, below that of the FTSE All Share at 10.8%! Particularly pleasing were April and November where the Portfolio returned +0.9% and +3.0% respectively against -2.2% and -0.7% for the Index. The main contributors to the 2014 performance were Regenersis (LON:RGS),easyJet (LON:EZJ),Dixons Retail (LON:DXNS),Globo (LON:GBO),Gable Holdings Inc (LON:GAH),Biotech Growth Trust (LON:BIOG),Vislink (LON:VLK) and Thorntons (LON:THT). All except Globo and Gable are still held in the portfolio.
Mistakes of 2013 included holding on to a couple of stocks, (Agriterra (LON:AGTA) and £POL) too long, (not being disciplined with my stop loss), when I could have/ should have put the money to better use elsewhere. Both these cases are value plays, standing at discounts to asset value, but the problem is that they are in sectors/themes that the market is not keen on. With patience I am sure these stocks will come right but at the moment I have better fish to fry.
