My StockRanks £20k Portfolio 2 years on (Part 1) - Results

Monday, Oct 24 2016 by
22

Introduction

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

But lets recap on my rules based strategy was for the year.

My Farming 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
  7. A wide non destructive Stop Loss will be placed. [new rules going forward]

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.

Although I wanted to provide as little human intervention as possible under this system I was able to choose stocks from each sector that I thought would perform better than others.    I  also reserved my right to intervene when an extra-ordinary or surprise announcement that would adversely impact any stock.

Portfolio as of 24 October 2016 - 2 year on

The value of the portfolio has been flat. (+0.57%) 

2016 valuation £29220.35 & 2015 valuation £29054.28 (based on valuation chart below and trying my best to reconcile with my Halifax statement.). The portfolio has under performed the FTSE All-Share for the same period (+8%)

Since inception the value of the portfolio has increased by 39%, Annualised 19.5% 

sr-portfolio

All but one of the StockRanks have fallen below the 90 threshold.  Empresaria (LON:EMR) remains above 90 and the share price had risen a respectable 25%.   EMR was one of the stocks…

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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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Animalcare Group plc is a United Kingdom-based sales, marketing and product development company. The Company is principally engaged in the development, sale and distribution of licensed veterinary pharmaceuticals and identification products and services to companion animal veterinary markets. The Company develops and sells goods and services to veterinary professionals principally for use in companion animals, operating through the United Kingdom wholesalers and distribution and development partners in markets in Western Europe. The Company's product portfolio is divided into three product groups: pharmaceuticals (Licensed Veterinary Medicines); pet microchips (Companion Animal Identification), and consumable items (Animal Welfare Products). Animalcare Ltd is the Company's subsidiary. It has operations in the United Kingdom, Europe and Rest of World. more »

LSE Price
157.5p
Change
 
Mkt Cap (£m)
94.6
P/E (fwd)
13.2
Yield (fwd)
2.8

The Berkeley Group Holdings plc is a holding company. The Company, along with its subsidiaries, is engaged in residential-led, mixed-use property development. Its segments include Residential-led mixed-use development and Other activities. Its brands include Berkeley, which creates medium to large-scale developments in towns, cities and the countryside, encompassing executive homes, mixed use schemes, riverside apartments, refurbished historic buildings and urban loft spaces; St George, which is involved in mixed use sustainable regeneration in London; St James, which handles projects that embrace private residential development, commercial property, recreational and community facilities; St Edward, which offers residentially led developments, and St William. Berkeley First is a division of the Company specializing in student accommodation and mixed use residential development within London and the South East. Berkeley Commercial is its commercial property developer and investor. more »

LSE Price
3654p
Change
-3.3%
Mkt Cap (£m)
4,877
P/E (fwd)
11.3
Yield (fwd)
5.4

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
75p
Change
 
Mkt Cap (£m)
36.8
P/E (fwd)
6.1
Yield (fwd)
3.0



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14 Posts on this Thread show/hide all

Edward Croft 24th Oct '16 1 of 14
2

Ian, Your 2016 experience is not too dissimilar to my New Year NAPS portfolio this year. It's up about 2% at the time of writing. The semi year rebalanced portfolio is up about 7% year to date, which perhaps shows that rebalancing after a general market drawdown may be a rewarding strategy.

The broader StockRank 90+ set are up about 8% year to date... all these sets of stocks are performing well behind the indices. The FTSE indices are market cap weighted, and the large cap exporters have done particularly well this year due to the falling pound and a flight to safety.

Personally I'm not bothered by the apparent underperformance - after all on a 2 year basis these strategies have done outstandingly well. I know a European long/short hedge fund manager who has found 2016 an impossible year, while 2015 was a record year. Sometimes the market needs to churn to find new footing and generate new leadership.

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Howard Adams 24th Oct '16 2 of 14
2

Grindertrader

Many thanks for sharing your workings and in particular your patience over time. I find it particularly useful reading about the experiences of other Stockopedia investors and their respective portfolios.

Regards
Howard

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Grindertrader 24th Oct '16 3 of 14
3

In reply to post #155644

I am with you Ed. I do not actually believe that this is an underperformance myself really. I have tried to update the article to a wider conclusion I seem to be deleting stuff instead of adding in more comments.

One uncomfortable question I often ask myself during this past two years, is why I am spending over a thousand pounds on different subscription platforms, newspapers, and magazines when just £200 a year for a Stockopedia subscription, a few hours per year and the portfolio has held up well. considering all the uncertainties that we are facing.

I am glad in a way that this year has come to test the portfolio. I doubt I could have an effective strategy if the portfolio outperformed year in year out. I guess we would become complacent and over confident.

I have faced a tremendous first year and a challenging second year. This puts a more balanced perspective on the system and can help tweak the rules going forward.

Thanks again for Stockopedia.

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Grindertrader 24th Oct '16 4 of 14

In reply to post #155659

thanks for the kind words, I certainly find the StockRanks system useful and my ultimate plan is to completely adopt the system across all my portfolios. I hope in the next 2 to 3 years.

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Mark Charles 24th Oct '16 5 of 14
1

What is refreshing is to find honesty in someone saying " yep didn't go as planed this year "

I run something similar but run it April to April as it gives me a chance to jiggle things about and use the ISA limits at the same time. Overall my SR portfolio is about 7 % up from April. So it's good to see that although I feel a little disappointed with my performance its on par with what others are finding.

Thanks for the update Ian/Ed

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canapa123 24th Oct '16 6 of 14

Some of your stocks appear to be relatively lowly ranked - Why not look for all high rank say > 80 at the outset?

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Carey Blunt 25th Oct '16 7 of 14
1

In reply to post #155698

Canapa123 - I believe that when they are picked they are all over 90 and then over time any that go lower than that get thrown out and swapped for new ones over 90 when Ian rebalances once a year.
Carey

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Grindertrader 26th Oct '16 8 of 14

Just to let readers know that I sold out of ALL Stocks here yesterday. Since all but one was to be sold, leaving EMR which needs rebalanced anyway. So for a small cost and spread on EMR I'll buy back in when I choose my next set. This will probably be Thursday or Friday, and declared during the weekend.

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Grindertrader 26th Oct '16 9 of 14

In reply to post #155698

yes sorry for not replying sooner. I normally chose StockRanks in their 90's. I should make that clear in the rules.

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clevedonbob 19th Nov '16 10 of 14
3

first time on this site but as an income investor its nice to find those of a similar purpose.spent years on sharescope but with no great reward .this has a good feel to it,, so hi

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alan martin 8th Dec '16 11 of 14
4

Everyone has to develop his own approach to investing. In my case I concentrate on capital growth and to shares on AIM. In December 2105 I had £17900 invested. Today, just short of a year later, the valuation is £41200 with one share suspended and therefore currently without valuation. I have also drawn £4000 in cash from my portfolio. Can I continue at this pace? I doubt it but I think I can guarantee a return of 25% unless the market crashes completely..

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Grindertrader 10th Dec '16 12 of 14
2

In reply to post #158812

Hi clevedonbob, I agree with you that this site is very welcoming and we all share your goals with trying to achieve steady returns year in year out. There are many successful and full times investors who are willing and openly share their experiences and mythology within the Stockopedia range of blogs and articles. I have learned a lot from them and continue to learn.

Just ignore the comments from those who make earth shattering guaranteed returns. That's for the bulletin boards elsewhere. Here most blogs and articles are designed for realistic, long term views and are very educational.

all the best Ian

*with regards to Sharescope, many of us are cross platform and happy to use what ever tools help us achieve our aims. Phil Oakley is also extremely helpful in his articles.

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beatingmrindex 13th Dec '16 13 of 14

In reply to post #161731

Alan, thats a fantastic return - well done. Are you going to share what methododlogy you used and which shares you bought?

Kind regards,

Pete

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alan martin 13th Dec '16 14 of 14
4

In reply to post #162157

G'day, Pete.
I choose a sector of the market I feel will be safest, given the turmoil we've had and can expect. Currently I'm in minerals and oils as the first is (I hope) in the recovery phase and oils are relatively safe at currrent oil prices and the Midddle East could fall apart. I have a dozen shares with a turnover of about one a month. You can't win them all! Best hopes at the moment, Sound oil and Hurricane, Ironridge and Rare Earth Minerals.
Luck to you,
Alan

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