Magic Hat – HVN stays in

The MHP (Magic Hat Portfolio) on Stockopedia (http://www.stockopedia.com/fantasy-funds/magic-hat-463/) is an experiment by me to see if a human can improve on a mechanical Greeblatt Magic Formula screen. I am trying to weed out “mistakes” that I feel the screening commits: unseasoned companies, scams, foreign companies (particularly Chinese), fishy accounting, and statistical quirks. Apart from that, I am agnostic as to the sector the company operates in, although I will try to avoid heavy concentration in any one sector. I will mostly apply “Strategic Ignorance”, by which I mean that I wont try to be clever in my stockpicking. My picking will be mostly mechanical. A summary of most of my Magic Hat articles can be found on the web page http://www.markcarter.me.uk/money/greenblatt.htm This will allow you to see, at a glance, what shares have been bought and sold in the past, as well as what shares have been rejected from consideration and why.

HVN is due to be ejected from the portfolio by rotation, but seeings as it still meets with the Magic Formula criteria, it stays in. It has a StockRank score of 98, also making it a keeper. The company has returned 27% since holding it a year ago, which is a very nice return.

The Magic Hat portfolio has come off the boil since May 2017; a phenomenon which I feared would happen.

Stay safe out there.

About mcturra2000

Computer programmer living in Scotland.
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