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.
LSL leaves the portfolio by rotation, having gained 10% over one year. Not fantastic, but it beat the ASX (FTSE All Share Index), which was only up 0.4%.
Construction & Engineering company MGNS enters the portfolio on account of qualifying for the Greenblatt Screen and having a Stockopedia StockRank in the 90’s.
That’s enough talk about money. It’s time to go outside and enjoy some sunshine. Stay safe.