Momentum, Growth and Quality investing strategies saw the strongest returns in the third quarter of this year - both in the UK, across Europe and in the United States. For the 60 guru-inspired investment strategies tracked by Stockopedia, these are proving to be ideal conditions.

For the first time in over a year in the UK, there were clear winners and losers among the different investment styles. Strategies that chase growth and momentum have outperformed, and saw decent profits in Q3. But value and deep value bargain styles have suffered over the summer.

Index / Strategy Composite

Q3 2017 Performance

12 Months Performance

FTSE 100 (UK)

+0.8 pc

+6.9 pc

FTSE 250 (UK)

+2.8 pc

+11.2 pc

FTSE SmallCAP XIT (UK)

+2.3 pc

+14.0 pc

AIM 100 (UK)

+5.5 pc

+30.1 pc

S&P 500 (US)

+4.0 pc

+16.2 pc

FTSEurofirst 300 (Europe)

+1.8 pc

+12.4 pc

Guru Strategy Composite (UK)

+2.7 pc

+20.5 pc

Momentum Composite

+7.7 pc

+25.7 pc

Quality Composite

+4.3 pc

+17.9 pc

Growth Composite

+3.8 pc

+35.7 pc

Income Composite

-0.9 pc

+14.9 pc

Value Composite

+0.5 pc

+13.1 pc

Bargain Composite

-0.4 pc

+18.7 pc

Market round-up

Before we dive into the latest quarterly performances of the Guru Strategies, it’s worth taking a quick look at the context...

UK markets were pretty flat over the summer. The Alternative Investment Market, the smaller company index closely watched by individual investors, continued to set the pace. The AIM 100 (of the largest stocks on the index) has grown at a faster rate than all the other main indices in each of the past four quarters. AIM’s growth has slowed from the double digit rates we were seeing in Q3 and Q4 last year, but the 5.5 percent gain in the past quarter is still eye-catching. But to put that in context, AIM is only just getting back to where it was in 2008, ahead of the financial crisis.

59d3be6f4f54eAIM_100.png

In the United States, there was a hint of a wobble in August for the otherwise relentless S&P 500. But it quickly bounced back and broke the 2,500 point mark the following month. Some have called this “the most hated bull market in history”, but so far there’s no let-up in a run that now stretches well beyond eight years.

Elsewhere, the FTSEurofirst 300 hit a soft patch in May that saw the index lose value right through…

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