It’s a year since I created a rules based dummy portfolio which I’ve been tracking on Stockopedia’s fantasy funds. The aim of this was to see if I can’t beat an imagined institutional fund, by only investing in larger companies in an attempt to beat the market.
I also created some other model portfolios with which I want to track long term performance and I’ll try and get round to posting these before their annual review at Christmas.
I’m calling it ‘UK Large Caps StockRanks NAPS’. The rules for the first model portfolio are as follows:
- Approx 20 companies. Each stock circa 4.5% position.
- Each company must be >£1billion market cap
- Pick of 2 stocks from each of Stockopedia’s ten sectors with stockrank >90. If there are none I will relax this to SR>80. If there are still no matches, I will not select a company.
I may choose up to 3 companies above $1m market cap at entirely my own discretion. For the year passed I selected tetragon and Randgold.
So how did I do? A rather disappointing -2.4% slightly under the FTSE350 performance I chose as a benchmark.
So on to this year’s picks. Following the rules most sectors gave me very little choice with only 2 or 3 companies within the criteria. Only utilities had less then 1 company with a stock rank above 80. Interestingly this year the selections are less recognisable than last year.
I want gold exposure so I’ve found two miners in Acacia Mining and Centamin from perhaps only 3 gold miners to choose from. I’ve also included IG Group.