Change to my Stockopedia portfolio

My public portfolio on Stockopedia
( has been running since February 2011. The aim was “To achieve above average capital and income return over the FT350 by investing in a portfolio of quality defensive companies.”

Performance has been mixed. Over 1years, the portfolio returned 18.6%, compared with the FT350 of 12.0%. That’s outperformance, but hardly Buffettesque. Over 2 years, the outperformance has been even more marginal: 28.7% as opposed to 24.9%. Over the life of the portfolio, there has been quite significant outperformance: up 33.3% against the market of 9.6%. So, a lot seems to depend on where you place the beginning and end points.

A stand-out performer has been RTN (Restaurant Group). There are no prizes for guessing which sector that is in. A real laggard has been MRW (Morrisons), which was dragged down along with Tesco. There has only been one disaster pick, and that’s ABM (Albermarle & Bond), a pawnbrokers. They have recently taken the bizarre step of melting down gold.

I think much of my portfolio is in companies that are too big and too slow, so I want to see if I can juice returns by applying Magic Formula criteria. Wish me luck.

My first change will be to jettison inter-dealer broker TLPR (Tullett Prebon), which doesn’t even have a Magic Formula ranking on account of being a financial. It has been a slow old dog in the portfolio, although I reckon it’s on a P/FCF of about 10 – if I do some averaging. That should give investors pretty good odds, actually.

I’ll replace it with DTG (Dart Group), which is on an even cheaper P/FCF, and earns a Magic Formula Score of A+. Its Stockopedia StockRank is 98, and passes 10 screens. Revenue projections look good.

Let’s see if I can beat both the FTSE350 and Stockopedia
Greenblatt screen by choosing a portfolio of 10 shares from those suggested by Greenblatt. I will transition shares slowly, rather than all at once.

Let’s see how I do.

I actually own shares in DTG, but none of the other shares listed in the Blippy Defensive portfolio on Stockopedia.

Happy investing to you all.

About mcturra2000

Computer programmer living in Scotland.
This entry was posted in Magic Formula Investing. Bookmark the permalink.

1 Response to Change to my Stockopedia portfolio

  1. Pingback: Magic Hat Portfolio | mcturra2000

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