My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing

Tuesday, Oct 27 2015 by
40

Introduction

My StockRanks £20k Portfolio 1 year on (Part 2) - The Rebalancing,  is part of a series of posts about adopting the Stockopedia StockRanks into a £20K starting cash balance portfolio. 

The following links provide the journey so far with the most recent first.

  1. My StockRanks £20k Portfolio 1 year on (Part 1)
  2. My Stockopedia 20k Farmed Portfolio - The PLUS500 effect and why I am happy
  3. My StockRanks Farming Approach - a 20k Real Money Test Portfolio

As followers of this series are aware the portfolio is now 12 months old and it is now time to rebalance the portfolio.  

I have to admit that I have found the process of rebalancing a bit of an emotional struggle.   By sticking to the rules I have had to sell many of the stocks that 'I love' .  This was something that I struggled to accept.  Twelve months ago I had selected some stocks that as an 'old fashioned stock picker' I knew quite well and felt a little confident that they would do well.   The high StockRanks seemed to me to confirm my confident biases.

This year I have found less stocks to choose from in my screeners as quality stocks have become high in value.  The real test for me has been my emotions and thus sticking to the rules.

I created a you tube video here, where you can see me starting to tackle the rebalancing.  in this video my lack of confidence in my new selection is evident.  But that is the challenge.  To trust the StockRank system, stick to the rules and keep emotions at arms length.  So this is what I have done.

My Rules

  1. The Stockopedia QVM Recipe (Quality > 66, Value > 66, Momentum > 66)  
  2. Dividend Yield 12 month rolling > 0
  3. Market Cap > £20m
  4. Spread (bps) < 500
  5. Sector includes - One screener for each sector (10 sectors in total)
  6. Rebalance every 12 months *new rule

 Exit Plan

A stock will leave the portfolio when it goes below StockRank 90 and a more suitable qualifying stock can take its place. Once the Stock is part of the portfolio the Quality, Value or Momentum figures may go below 66.  That is ok as long as the Stock remains above 90 at the time of rebalancing.

The Portfolio

So here it is, my portfolio rebalanced and…

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


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Empresaria Group plc is a United Kingdom-based international specialist staffing company. The Company's principal activity is the provision of staffing and recruitment services. The Company is organized across three regions: UK, Continental Europe and Rest of the World and operates across seven key sectors. The Company targets a balanced and diversified spread of operations across its regions and sectors. The Company also targets professional and specialist job levels where its brands can offer value added services to clients. The Company has three main service lines, temporary recruitment, permanent recruitment and offshore recruitment services. The Company’s offshore recruitment services represents a range of different recruitment services and provides training services in South East Asia. The Company's brands include Alternattiva, Ball and Hoolahan, Become, FastTrack and Greycoat. It has operations in 21 countries. more »

LSE Price
65p
Change
2.4%
Mkt Cap (£m)
31.1
P/E (fwd)
5.0
Yield (fwd)
3.6

Epwin Group Plc is a manufacturer of extrusions, moldings and fabricated low maintenance building products, operating in the repair, maintenance and improvement, new build and social housing sectors. The Company operates through two segments: Extrusion and Moulding, and Fabrication and Distribution. The Extrusion and Moulding segment is engaged extrusion and marketing of polyvinyl chloride-unplasticized (PVC-U) window profile systems, PVC-UE cellular roofline and cladding, rigid rainwater and drainage products and wood plastic composite decking products. It operates from extrusion and molding facilities in Telford, Tamworth and Scunthorpe, among others. The Fabrication and Distribution segment is involved in fabrication and marketing of windows and doors, distribution of cellular roofline, rainwater and drainage products, and manufacture of glass sealed units. It operates from over five window and door fabrication sites, and approximately two glass sealed unit manufacturing sites. more »

LSE Price
87.6p
Change
3.2%
Mkt Cap (£m)
121.3
P/E (fwd)
7.8
Yield (fwd)
6.4

NWF Group plc is engaged in the manufacture and sale of animal feeds, the sale and distribution of fuel oils, and the warehousing and distribution of ambient groceries. The Company operates through three segments: Feeds, Food and Fuels. The Feeds segment is engaged in the manufacture and sale of animal feeds and other agricultural products. The Food segment is engaged in warehousing and distribution of clients' ambient grocery and other products to supermarket and other retail distribution centers. The Fuels segment is engaged in the sale and distribution of domestic heating, industrial and road fuels. The Company's subsidiary, Boughey Distribution Limited, is engaged in warehousing and food distribution. Its subsidiaries, NWF Agriculture Limited, S.C. Feeds Limited, New Breed (UK) Limited and Jim Peet (Agriculture) Limited, are engaged in animal feedstuffs and seeds supply. Its subsidiaries, NWF Fuels Limited and Staffordshire Fuels Limited, are engaged in fuel distribution. more »

LSE Price
164.4p
Change
0.2%
Mkt Cap (£m)
80.0
P/E (fwd)
10.6
Yield (fwd)
4.2



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10 Posts on this Thread show/hide all

herbie47 8th Dec '15 1 of 10
1

Hi Ian,
Just watched your video, this was published when I was away so I missed it. Yes I have similar feelings about year 2 as you do but time will tell. I see Finsbury Food (LON:FIF) is back upto 90 now. I thought when comparing 2 or 3 shares you would have used the comparison feature on Stockopedia, I know it does not have all the details but its a useful quick comparison tool. Another thing I don't really bother about market sector averages, because say Financials this is high because of several large banks which I doubt will be included, it also does include some housebuilders and property companies. Manx Telecom is ok apart from pension deficit. Epwn I do hold but I'm really not sure about it, after what happened to Entu, I'm a bit nervous and may sell soon. Think BKG is a good choice and has gone up recently. I did a NAPS the other day and I think 10/20 top ranked ones were Industrials.

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Redrichmond 21st Mar '16 2 of 10

Hi ian, how is your portfolio going. Its been a bit hit and miss for me over the last few months but up 9% overall

Regards
John

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GrindertraderUK 22nd Mar '16 3 of 10
2

In reply to post #124748

Hi Redrichmond.

Sorry for not replying sooner, as I have been away working

The portfolio value excluding dividends since i last reported in October stands at £28,241 so up a little but mostly flat. I haven't added the divi yet when I get round to reporting it properly next October I'll print out a divi statement from Halifax and add them in.

Looking at the FTSE All Share at same period, it is down around 2.7% so I can't complain

234m0z.png

Good luck in your portfolio.   The fact my StockRanks Portfolio is holding out well and with very little attention on my part is satisfying.

best wishes Ian



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GrindertraderUK 5th Jul '16 4 of 10
4

Hi everyone. In view of the BREXIT vote had a quick look at my StockRanks 20K Portfolio (real account).

Currently at £28857 it is -0.68% from last October 2015 (taken from actual halifax statement)

Full review will be carried out during October 2016 on it's 2 year anniversary.

not bad considering black Friday, BREXIT, and everything else thrown at us since then

regards
Ian

| Link | Share | 1 reply
troytea 5th Jul '16 5 of 10
1

Thanks Ian,

It looks like the stock ranks portfolio is holding up well. I'm about to set one of my own up so it is useful to read stories from those who have done this already

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Edward Croft 5th Jul '16 6 of 10
2

In reply to post #141050

I have a NAPS portfolio update due this week. Will be interesting reading too !

| Link | Share | 1 reply
GrindertraderUK 5th Jul '16 7 of 10

In reply to post #141080

As with the whole Stockopedia community I look forward to the NAPS update. Fingers crossed it has held up well too.

regards
Ian

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vik2001 6th Jul '16 8 of 10

I invested in January £33,000 into a real life NAPs portfolio. its down by £3000 as of today

The biggest winner being H&T

The biggest looser being Inland Homes

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ls2g08 6th Jul '16 9 of 10

I did a NAPS style portfolio, but 50/50 split between US and UK stocks. It is up 10% to date. Best performer Central Garden & Pet Co up 81%, worst Robinson down 24%.

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JPshares 14th Jul '16 10 of 10
4

Hi Ian, I was curious to analyse the effect of just your re-balancing exercise - i.e. the delta between just your new stocks and those you swapped out. So I did.

Watching the video I was not too sure about a few decisions made, such as dropping JD which was doing really well (and has done well since incidentally). But I'm pleased to announce that given an equal weighting (I don't know how you actually weighted them in reality):

The 4 stocks you sold have on average......gone down 6.85% since 26-Oct-2015
Whilst the 5 stocks you bought in have.......gone up 9.04% on average since 26-Oct-2015!

A VERY respectable ~17% difference as a result of your re-balancing these stocks! Pretty amazing actually given the market conditions.

It goes to show that leaving emotions for individual stocks aside and following a rules based approach really can work!

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