Proforma: The MHP (Magic Hat Portfolio) on Stockopedia (http://www.stockopedia.com/fantasy-funds/magic-hat-463/) is an experiment by me to see if a human can improve on a mechanical Greeblatt Magic Formula screen. I am trying to weed out "mistakes" that I feel the screening commits: unseasoned companies, scams, foreign companies (particularly Chinese), fishy accounting, and statistical quirks. Apart from that, I am agnostic as to the sector the company operates in, although I will try to avoid heavy concentration in any one sector. I will mostly apply "Strategic Ignorance", by which I mean that I wont try to be clever in my stockpicking. My picking will be mostly mechanical. A summary of transactions can be found at https://blippy.github.io/money... As of January 2020, I have adjusted my strategy a little. Instead of selecting stocks from the Greenblatt Screen, I will select them from Stockopedia's Screen Of Screens, and look for a StockRank (TM) in the 90's. I won't rule out selecting something from the Greenblatt Screen, though. With the boilerplate now out the way, let's move on to the actual content ...
Well, what a disaster the year has been so far this year. The Fantasy Fund is down 39% this year (approximately), compared with 30% for the FT350. It has had a good run-up at the latter half of 2019, so on a 6-month basis, it is performing in-line with the FT350. It is still beating the index over the life of the fund, but it has taken a major beating.
My own personal portfolio is down about 39% YTD (approximately) discounting today's rise, so I am underperforming the index by about 10%. I am obviously disappointed with my performance. Cold beans for tea for me, I think!
Back on topic.
SCS (LON:SCS) leaves the portfolio by rotation. British American Tobacco (LON:BATS) enters. I've no particular commentary to add about that.
Companies that have caught my attention in a positive way include International Consolidated Airlines SA (LON:IAG). A director bought £400k worth of shares on 10 March. It stands on an EV/EBITDA fo 2.6, which is extraordinarily cheap. Wizz Air Holdings (LON:WIZZ) also looks good. Directors bought £643k worth of shares on 12 March. It is on an EV/EBITDA fo 2.7.
