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. You can view the portfolio by switching to the old version of the Stockopedia site. With the boilerplate now out the way, let's move on to the actual content ...
A nice easy month this one: Ferrexpo (LON:FXPO) was due to be booted from the portfolio by rotation, but given its high Stockopedia StockRank and being a member of the Screen Of Screens, it stays in.
In my own portfolio, I sold down half my Sylvania Platinum (LON:SLP) and bought Kingfisher (LON:KGF) with the proceeds late last month. I made the sale due to the plummeting share price when Sylvania Platinum (LON:SLP) announced its Q4 report. I regard share price falls of more than 10% a "sell". It's not an infallible strategy, as Paul has noted. It's one that seems to work more times than not, though, so that's the one I've adopted. I was in a quandary as to what I'd actually do. I bought the shares in March 2018 at 18.4p, and sold half of them last month at 97p. So, a great performer, and as you can imagine, it was a top-heavy holding in my portfolio. Sylvania Platinum (LON:SLP) still has a high StockRank and is still a member of the…
