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John Neff Value Screen 115 Qualifying

John Neff Value is a value investing strategy based on the rules of successful US fund manager John Neff. It combines demanding value criteria with elements of growth, quality and dividend income. Although he didn't like the term, Neff was a contrarian investor buying good companies with moderate growth and high dividends while out of favour, and selling them once they rose to fair value. One of the tools used by Neff is the Total Return Ratio, which is calculated using the price-to-earnings growth factor (PEG), but adjusted for dividend yield - PEGY. John Neff wrote: "If you buy stocks when they are out of favor and unloved, and sell them into strength when other investors recognize their merits, you'll often go home with handsome gains." During his tenure as manager of Vanguard's Windsor Fund between 1964 and 1995, Neff's average annual total return was 13.7%.

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This is an independent study based upon the methods of...
Picture of John Neff

John Neff

Famous contrarian investor known as the "professional's professional" because many fund managers entrusted their money to him

John Neff On Investing

by John Neff

Published in 2001, this book outlines Neff's investment philosophy. John Neff's average annual total return from Vanguard's Windsor Fund during his 31-year tenure (1964-1995) as portfolio manager was 13.7%. He exceeded the market rate of return by more than 3.5% on a gross basis (and 3.15% on a net basis). He showed a great consistency in beating the broad market index 22 times and was regularly in the top percent of money managers.

This screen uses the following criteria:

  • PEGY < 1
  • Sales Gwth Streak >= 4
  • EPS 5y CAGR % > 2
  • EPS 5y CAGR % < 20
  • P/E < Median P/E
  • FCF > 1 * FCF 1y Ago
  • Op Profit > 1 * Op Profit 1y ago
  • Op Mgn % > Median Op Mgn %

Results are sorted by:

  • P/E in ascending order


And limited to the first 200 Results


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Performance Tracking


Returns FTSE 100
1 week 0.6% 2.5% -2.0% -13.8% -0.9% 2.5% - 2.8%
1 month 0.8% 1.5% -4.6% -18.9% -1.8% -4.3% - -0.9%
3 months -4.7% -5.9% -2.9% -20.7% 12.2% -5.9% - -0.0%
6 months 8.4% -0.5% 12.0% -30.0% 23.3% 6.3% -0.5% 8.5%
1 year -0.6% -3.4% 7.9% -21.8% 19.5% 11.1% 6.3% 2.8%
2 years -4.4% 11.1% 22.0% -14.9% 50.0% 25.7% 20.8% 8.7%
Annualised 0.5% 7.4% 14.5% 8.6% 37.1% 21.8% 31.5%
 
Risks
Max Drawdown -39.1% -23.9% -16.2% -39.1% -16.9% -12.7% -32.3%
Avg Holdings 3.9 14.5 21.2 8.5 3.3 24.2 1.8
Diversification Low Moderate Good Moderate Low Good Low