Quarterly Strategies Review: Growth stocks rock in Q3

Friday, Sep 13 2013 by
Quarterly Strategies Review Growth stocks rock in Q3

Screening strategies that hunt down growth shares at reasonable prices were by far and away the best performers of all 60 of Stockopedia’s GuruModel screens during the third quarter of this year. With the quarterly rebalancing of those models due this weekend, we’ve been reviewing the 3-month returns, and while it’s clear that growth strategies have been the big winners, there were also a few other surprising successes along the way.

Our GuruModel screens were last rebalanced in mid-June, shortly before some sharp falls in the value of the FTSE. Since then those declines have been clawed back and the index is currently up by around 11.6% so far this year (6,588 points at the time of writing). Perhaps the biggest news of the quarter was the rule change at the start of August that means investors can now buy AIM-quoted shares using tax-efficient ISAs. Unsurprisingly, this has had a major impact on the junior market , with the AIM-100 currently trading up by 7.7% since then (and up by 12.7% for the year). While impressive, that performance is still way off the pace of the FTSE Smallcap index, which has risen by a remarkable 22.4% in 2013.

After the rollercoaster for equity prices early in Q3, the summer turned out to be comparatively quiet but that didn’t stop many of our screens from producing some exceptional results. Overall, the composite performance of the GuruModels during the past three months has been an 11.0% return against a modest 4.6% for the FTSE. Click here to see how the screens stacked up.

Taking top honours was our pure Growth at a Reasonable Price (GARP) screen, which returned a stunning 25.2% during the quarter. The GARP screen looks for companies with a medium-term track record of earnings growth, robust return on capital, improving margins, share price strength and a reasonable valuation versus the sector. We couldn’t resist having a closer look at that performance recently (read about it here), which has been driven by a number of shares that have enjoyed some spectacular price rises. Among them is Scottish TV production and broadcasting company STV (LON:STVG), which has produced an 82% gain for the GARP portfolio since it was bought in June.

Another high flying stock in the portfolio (and a number of other…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way


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. 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. ?>

Do you like this Post?
8 thumbs up
0 thumbs down
Share this post with friends

STV Group plc is a United Kingdom-based digital media company. The Company is engaged in the production and broadcasting of television programmes, Internet services and the sale of advertising airtime and space in media and lottery management services. It operates through four divisions: Broadcast, Digital, Production and external lottery management (ELM). Its Broadcast and Digital divisions deliver content to attract audiences across multiple platforms which are sold to advertisers. Its Production division produces content for broadcast networks in the United Kingdom and overseas. It is also engaged in charitable activities. Its ELM division provides operational services, such as ticket sales and marketing to charitable society lottery, Scottish Children's Lottery. The Company's subsidiaries include STV Central Limited, STV North Limited, STV Productions Limited, Scottish News Network Limited, STV Publishing Limited, STV Out of Home Limited and STV Appeal Trading Company Limited. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

Staffline Group plc is a holding company, which is engaged in the provision of recruitment and outsourced human resource services to industry and services in the welfare to work arena and skills training. The Company has two segments: Staffing Services, which includes the provision of temporary staff to customers, and PeoplePlus, which includes the provision of welfare to work and other training services. Its Staffing Services focuses on providing complete labor solutions in agriculture, food processing, manufacturing, e-retail, driving and the logistics sectors. Its recruitment business operates from well over 300 locations in the United Kingdom, Eire and Poland. The Staffing brands include Staffline OnSite, based on clients' premises providing both blue and white collar, out-sourced, temporary workforces. Its Employability includes work program, prime contractor in over nine regions and sub-contracts in approximately five regions in England. more »

LSE Price
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is LON:STVG fundamentally strong or weak? Find out More »

4 Comments on this Article show/hide all

matti69 14th Sep '13 1 of 4

Hi Ben

To which 'investing cycle' are you referring?



| Link | Share | 1 reply
Murakami 14th Sep '13 2 of 4

In reply to post #77248

Re: the investing/investment cycle, and how that interacts with the economic cycle, see the diagram at the top of page 3 of this PDF:


| Link | Share
matti69 14th Sep '13 3 of 4

Thanks Murakami

| Link | Share
Richard Goodwin 17th Sep '13 4 of 4

Interesting article. Thanks.

| Link | Share

Please subscribe to submit a comment

About Ben Hobson

Ben Hobson

Stockopedia writer, editor researcher and interviewer!


Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis