Tag: portfolio

  • September Review

    Doom, gloom and trouble

    Another volatile month for the market leaves the EV Fund on more or less the same footing as last review. The market has swung around, but ends the month down 1.9%. EV Fund ends the month down 0.8% - disappointingly down, but at least better than the market performance. Since inception, the fund is down 5.6%. In the same period, the market is down 12.3%, giving an outperformance of 6.7%.

    As ever, I take little from the month-by-month statistics except a chance to logically reflect on my positions, their price movements, and any steps I need to take. The four biggest movers have moved on essentially no news, and haven't moved significantly enough to warrant me reconsidering their positions in the portfolio. September looks to be a news-filled month, though, with RSM Tenon and Barratt (off the top of my head) releasing statements. Barratt will be especially interesting - given their steep decline since my purchase, I'll be crossing my fingers that nothing too unexpected comes up. I suspect most of the drop is simply due to the high-beta nature of the stock and nothing company specific, so I keep a relaxed view on their price movements. (more…)

  • EV – The First Month

    July in Review

    Well, it's been a rollercoaster month, and here I am. Writing a review. After all I said about it being a long term project and being unable to discern a shred of truth from its performance in short time periods, I decided this month had enough interesting goings on that I should probably write a post summing it all up. I don't expect most months to be this interesting, but with around half of my companies reporting results of some sort, I thought it may be worth a look. I'm undecided whether these reviews are a good idea for my mental state or not - whether segregating its performance, trying to distill meaning from the market movements and generally reflecting on my picks is wise investment practice or will just lead me to exactly the kind of short-sighted irrationality I'm striving to avoid. We'll soon find out, I suppose - I suspect experience will lead me to lean one way or another on the issue - so if you never see me write a 'month in review' again, you'll know which way I went!

    In all, it's been a positive month, though it's obvious that we can't tell anything about the long term trajectory of my picks. It was a very particular kind of month for the market - the kind which sees a general hammering of most stocks, with the FTSE All-Share down over 10% since I began the portfolio. Hence, several factors inflated my performance - notably my holding of 14% cash for the majority of the month.

    Several of the companies experienced double digit percentage point growth in the space of a few days after reporting results, which was great, and a couple also notably bombed following announcements. Overall, though, the fund finished the month 4.5% down vs. a market fall of 10.6%. I'm pleased with this performance, and particularly considering it effectively 'started' the month 1.7% down - the effect of the high spread of the small caps in my portfolio, stamp duty and trading costs. Mostly, though, it leaves me curious to see how the shares fare when the market is in an upward direction - it may well just be that my picks are well insulated from the downturns, but equally participate little when things start rising again. (more…)

  • Expecting Value – A UK value investing fund

    Better late than never!

    Ok, ok, so technically I said it'd all be ready and up and running by the 1st. But I figure it's only one (working) day off, so I'll cut myself a little slack and hereby unveil my opening portfolio, a ragtag collection of equities I've stuck together based on my conviction that they're worth less than they should be, and that Mr. Market will fix it in the next few years. It's been a hectic month of putting together ideas and concepts and a whirlwind learning experience for me, but I now feel I'm ready to dive in head first and experience the bracing chill of the market's swings.

    Now seems an apt time to reiterate my goals, hopes and targets for this portfolio. Loosely speaking, my goal is experience and learning. I want to become a better investor, and what way could be better than running a portfolio? With no place to hide and the world to see, running a blog and a fund seems like the perfect way to make me externally justify my investment decisions. We're all prone to cognitive bias, but leaving your opinions to the scrutiny of others makes them easier to spot. Simply reading my own writing makes me notice things that I may not have had I just been talking to myself and compiling a list.

    My timeframe is certainly in the years. I'd be disappointed to be down after, say, a  year and a half, but realistically I have to account for the truths of my chosen style of investing - if I'm asserting that I think the market is irrational and undervalues shares for certain reasons, how can I then not accept that they may not correct themselves any time soon? Performance wise, I'll be comparing myself to the FTSE All-Share, as I have no limitations on my own stock universe and the all-share captures the broadest selection. It's not perfect, as it has a very different market cap structure to me, but perhaps that's the point. Realistically, I'll be aiming for a few percentage points in out-performance to compensate me for the opportunity cost of stock-picking. If I simply earn the market return, the rational think to do would be stick my money in a tracker and enjoy afternoons lounging in the sun instead of trying to wrangle meaning from accounting policies and balance sheets.

    (more…)