The StockRanks system has now beaten the market consistently for five straight years. Ed Croft wrote about some of the lessons learned in this piece in June. But for me, one of the most interesting insights was that Stockopedia’s proprietary QVM (Quality, Value & Momentum) ranking system hasn’t worked equally well in all regions.

You can read more about this in Ed’s accompanying webinar (available on video or as a slide deck to download). But in short, there are some regions where focusing on a balanced mix of Quality, Value and Momentum hasn’t worked very well over the last five years.

The two obvious examples are Japan (momentum hasn’t worked) and the USA (value hasn’t worked). There’s a lot more detail in the slide deck, so if you want to know what has worked well, I’d suggest taking a look at the slides.

These trends are of interest to me because I believe they have probably affected the performance of my International SIF portfolio, which I’ve been building over the last nine months.

This virtual portfolio is now fully invested, with 24 stocks. This week I’m going to take a closer look at progress so far. How have my international picks performed? And are any of them due to be sold?

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Before I go any further, I’d like to gauge the level of interest in international stocks.

Should I continue with the International SIF, or would you prefer me to focus on the UK market only?

To help me shape future articles, I’ve put together a very quick poll. I’d be very grateful if you could let me know what you think, either through the survey or in the comments below:

https://www.surveymonkey.co.uk/r/SKFFXSG

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The story so far

By way of background, let me recap the framework within which I’ve constructed the international SIF.

  • 24 stocks

  • 3 stocks purchased each month for eight months, then on a replacement basis to maintain the portfolio size at 24

  • Stocks are selected from a modified version of the SIF screen (the International SIF screen is here)

  • Stocks are held for a minimum of nine months before being reviewed

  • I aim to achieve a basic level of geographic and sector diversification

  • I don’t do any research, beyond checking what the company does and having a quick look at the StockReport page.

  • Stocks can…

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