My public portfolio on Stockopedia (http://www.stockopedia.com/fantasy-funds/blippy-defensive-463/) has been running since February 2011. The aim was “To achieve above average capital and income return over the FT350 by investing in a portfolio of quality defensive companies.”
Performance has been mixed. Over 1years, the portfolio returned 18.6%, compared with the FT350 of 12.0%. That’s outperformance, but hardly Buffettesque. Over 2 years, the outperformance has been even more marginal: 28.7% as opposed to 24.9%. Over the life of the portfolio, there has been quite significant outperformance: up 33.3% against the market of 9.6%. So, a lot seems to depend on where you place the beginning and end points.
A stand-out performer has been Restaurant (LON:RTN) . There are no prizes for guessing which sector that is in. A real laggard has been WM Morrison Supermarkets P L C (LON:MRW) , which was dragged down along with Tesco. There has only been one disaster pick, and that’s Albemarle & Bond Holdings (LON:ABM) , a pawnbroker. They have recently taken the bizarre step of melting down gold.
I think much of my portfolio is in companies that are too big and too slow, so I want to see if I can juice returns by applying Magic Formula criteria. Wish me luck.
My first change will be to jettison inter-dealer broker TLPR (Tullett Prebon), which doesn’t even have a Magic Formula ranking on account of being a financial. It has been a slow old dog in the portfolio, although I reckon it’s on a P/FCF of about 10 – if I do some averaging. That should give investors pretty good odds, actually.
I’ll replace it with DTG (Dart Group), which is on an even cheaper P/FCF, and earns a Magic Formula Score of A+. Its Stockopedia StockRank is 98, and passes 10 screens. Revenue projections look good.
Let’s see if I can beat both the FTSE350 and Stockopedia Greenblatt screen by choosing a portfolio of 10 shares from those suggested by Greenblatt. I will transition shares slowly, rather than all at once.
Let’s see how I do.
I actually own shares in DTG, but none of the other shares listed in the Blippy Defensive portfolio on Stockopedia.
Happy investing to you all.
