2017 Guru Strategies Review - winning styles and what to expect in 2018...

Monday, Jan 08 2018 by
2017 Guru Strategies Review  winning styles and what to expect in 2018

2017 was an excellent year for many of the 60 guru-inspired investment strategies tracked by Stockopedia. In the UK, there were 30 percent-plus returns in strategies inspired by legends ranging from Buffett and Graham to Dreman, Driehaus, Kirkpatrick and Piotroski. Throughout the year it was clear that Growth strategies - particularly in small-cap stocks - were setting the pace. But while Growth and Momentum were ultimately the big winners in a bullish market, Value strategies roared back to life in the fourth quarter.

In the United States, there were also strong returns in a number of Guru Strategies, but none of the overall styles managed to beat the S&P 500. The main index is still being driven by a handful of very large, very high performing stocks, and that’s putting a number of stock-selection strategies in the shade. By contrast, the strategies had a stunning year in Europe, where Growth and Momentum were the most profitable approaches.

Index / Strategy Composite

1 Year Performance

Q4 2017 Performance

FTSE 100



FTSE All Share



FTSE 250






AIM 100



AIM All Share



S&P 500 (U.S.)



FTSEurofirst 300 (Europe)



Guru Strategy Composite



Growth Composite



Momentum Composite



Bargain Composite



Value Composite



Quality Composite



Income Composite



About the Guru Strategies

We’re now moving into the seventh year of tracking the Guru Strategies in the UK, with slightly less history for Europe and the States. Over time, these models have become a useful way of seeing what’s working in the market, and how different styles react to different conditions.

Not only do they show what’s working, but they also show when trends start to change. They cover a range of approaches used by some of the world’s best known investors. Each one is classified under a specific style - ranging from Quality, Growth, Value, Bargain, Income and Momentum.


In terms of the mechanics, each strategy has its own set of rules, and we constantly screen the market for companies that meet them. At the end of each quarter, those passing the rules are held in a portfolio for each strategy, which we monitor. One word of warning though, is that the models aren’t always realistically investable, and sometimes there may not be many companies that meet the rules of some of…

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As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>

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4 Comments on this Article show/hide all

Nick Ray 8th Jan 1 of 4

Would be interesting to see the volatility as well as the % performance of the various strategies.

I get the impression that value strategies tend to have a higher volatility than the growth strategies for example.

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RichardEllis 10th Jan 2 of 4

Fascinating. It begs the question: what strategy-style to go for?

My strategy is growth, & for 2017 I achieved 33.8% with my portfolio which was almost all US stocks. The 33.8% figure was computed using US$ values - it was a lot less in UK£ due to the considerable change in exchange rates during the period (doubtless due to Brexit). All my stocks had high Stockopedia Q values.

It would be interesting to compare this with others who invested in the US markets. - Richard

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Quarnby1 10th Jan 3 of 4

No comments on income strategies. I would like to see how the income gurus performed against the major income ETFs ( eg: IUKD)

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johread 11th Jan 4 of 4

Very helpful though having a particular interest in the US market it would be even more helpful to have some views as to why Guru strategies seem to perform so much less profitably than in the UK and Europe - it can be very difficult to beat the S&P and the drain of dealing costs must be taken into account even though they are usually so much lower in the States. Any ideas please?

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