The Magic Hat Portfolio is here: https://www.stockopedia.com/fantasy-funds/magic-hat-463/ Its aim is to see if a subset of the Greenblatt Screen can be used to generate better returns.
Somero Enterprises Inc (LON:SOM) is due to be ejected from the portfolio by rotation. Seeings as it part of the Greenblatt Screen, it stays in.
I need to figure out what to do with Dart (LON:DTG), because it has too much weighting in the portfolio.
Once again, I would like to thank Ed and his team for the interesting webinar of Woodford's portfolio. His performance began to fall to pieces in mid 2017. It does raise the question: temporary underperformance, or bad stockpicking?
As Greenblatt has noted, all fund managers, no matter how august, spend periods of time, even over three years, in the bottom quartile. Are we writing off Woodford prematurely?
Woodford seemed to fall into a liquidity trap around 2017, leaving him holding a lot of speculative junk. Maybe the speculative stuff will come good, but I'm not hopeful. Put it this way: Peter Lynch was known as a growth investor, but I doubt he would have invested in most of that stuff. Lynch was more interested in dull but profitable companies. Woodford invested hundreds of millions of dollars in some real dogs.
I'm increasingly finding that Stockopedia suits my style of investing: fairly passive, quantitative, group selection. I am never going to shoot the lights out like the likes of Paul Scott, WheelieDealer, and the numerous other high-profile private investors out there that are smarter and more clued up than I am. But I am confident I know how to put a sensible portfolio together and avoid blow-ups. Woodford really ought to have known better.
One thing I have often said that bears repeating: if the Stockopedia StockRank is red (10 or below), then you should take that as a stern warning that a stock is to be avoided. The only exception to that is Investment Trusts, which always have a rank of 0.
Stay safe out there!
I bet you are please you stayed invested in Somero!
