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 ...
Norcros (LON:NXR) is due to be kicked out of the portfolio by rotation. Although it doesn't pass any screens, it has a StockRank of 93, and a P/FCF of 3.9, which is pretty cheap. I've no real enthusiasm for the company, but I decided to be lazy and keep it in. It has fallen 31% since its introduction to the portfolio; more than the underlying indices.
I had intended to have a rundown on the Stockopedia 2020 Stock Challenge I had entered last year. There were also a few people I was particularly interested in. Unfortunately, all the links seem to no longer work, so that's the end of that, then. My picks did exceptionally well at the beginning of the year, and I was chuffed with myself. Then COVID hit, spoiling the record. I don't expect that it finished up better than the indices.
My own personal portfolio declines about 14% - ouch - which is about inline with the indices, probably a little worse if I properly did the accounting.
You can see my entries for The 2021 Stock Challenge here: (URL). The chosen ones were: Ferrexpo (LON:FXPO), Premier Foods (LON:PFD), Ros Agro (LON:AGRO),…
