RSIC Mechanical Portfolio Review

August 2005 - August 2006

 

 

1         Summary

·         An excellent performance, up just under 20%, comfortably outperforming the FTSE 100;

·         Since inception, the portfolio is up 71.9% on total money committed and is showing an internal rate of return of 24.3% per annum;

·         Increasingly hard to find any candidates for the value side of the portfolio.

1.1        Performance Against Objectives

Objectives of the Strategy for the Mechanical Sub-portfolio are (not necessarily in priority order): -

a)      To achieve an average annual rate of return on investment across the portfolio that beat the FTSE 100

Met – outperformed the FTSE 100 by 6.1% during the year.

 

b)      To provide a reasonable level of “safety” so that the risks of significant losses within the portfolio are small

Met – with the dual criteria (‘value’ and ‘growth’) approach we have a reasonably well-diversified set of stocks that should also balance out short-term trends in popularity between the two. Portfolio has managed to sustain two very significant failures without seriously impacting its performance.

 

c)      To have a selection mechanism that is explicit, unambiguous, clearly understood and repeatable

Met - custom software program written to perform the analysis. Any club member is welcome to have a copy of the program and/or source code. Data is taken from Sharescope, a package used by many private investors.

 

d)      To provide a means of regular (though not necessarily frequent) share trading so that the Club’s overall portfolio maintains interest

Met – transactions typically now take place every month.

 

 

1.2        Recommended Changes

None, but we need to reassess the value criteria since they have failed to produce a valid candidate for many months now.


2         Transactions and Valuation

2.1        Past holdings

 

Type

Company

EPIC

Purchase Date

Price

# Shares

Total Cost

Dividends Received

Sale Date

Sale Price

Share Proceeds

Total (inc Dividends)

Profit / Loss

Profit / Loss %

Value

Countryside Properties

CYD

18/10/01

157.60

497

£799.19

£32.40

17/10/02

173.40

£849.80

£882.20

£83.01

10.4%

Value

Wimpey (George)

WMPY

13/12/01

196.31

399

£799.20

£34.12

18/12/02

230.00

£905.70

£939.82

£140.62

17.6%

Value

Westbury

WBY

21/02/02

285.60

274

£798.45

£31.10

03/03/03

315.22

£851.70

£882.80

£84.35

10.6%

Value

Crest Nicholson

CRST

25/04/02

237.60

330

£800.00

£31.35

28/04/03

215.50

£711.15

£742.50

-£57.50

-7.2%

Value

Savills

SVS

28/06/02

184.40

425

£799.62

£43.35

23/06/03

161.00

£672.25

£715.60

-£84.02

-10.5%

Value

Woolworths

WLW

29/08/02

30.73

2551

£799.84

£33.80

21/08/03

39.77

£1,002.53

£1,036.33

£236.49

29.6%

Value

Mowlem (John)

MWLM

17/10/02

139.50

580

£825.15

£59.16

22/10/03

185.37

£1,063.15

£1,122.31

£297.16

36.0%

Value

WH Smith

SMWH

18/12/02

335.99

206

£707.60

£39.14

19/12/03

275.00

£554.50

£593.64

-£113.96

-16.1%

Value

British Vita

BVIT

03/03/03

218.00

328

£730.62

£37.72

01/03/04

270.25

£874.42

£912.14

£181.52

24.8%

Value

TDG

TDG

23/06/03

199.00

446

£903.98

£62.45

30/06/04

210.38

£926.27

£988.72

£84.74

9.4%

Value

European Motor Hdgs

EMH

21/08/03

172.78

581

£1,020.87

£49.38

18/08/04

200.87

£1,155.05

£1,204.43

£183.56

18.0%

Value

Severfield-Rowen

SFR

23/10/03

323.88

306

£1,008.03

£32.90

05/10/04

477.50

£1,449.15

£1,482.05

£474.02

47.0%

Value

Crest Nicholson

CRST

28/04/03

215.50

330

£711.15

£49.50

26/10/04

339.90

£1,109.67

£1,159.17

£448.02

63.0%

Value

Countryside Properties

CYD

19/12/03

196.70

471

£943.09

£37.73

08/12/04

282.63

£1,319.19

£1,356.92

£413.83

43.9%

Value

Wagon

WAGN

01/03/04

198.00

514

£1,034.81

£46.26

23/02/05

179.50

£922.63

£968.89

-£65.92

-6.4%

Growth

Horizon Technology

HOR

24/03/04

66.50

1587

£1,077.91

£0.00

24/03/05

77.00

£1,209.99

£1,209.99

£132.08

12.3%

Growth

4imprint Group

FOUR

21/05/04

141.50

710

£1,021.67

£37.28

17/05/05

210.55

£1,482.91

£1,520.19

£498.52

48.8%

Value

Fyffes

FFY

30/06/04

117.34

897

£1,075.01

£32.89

20/06/05

155.55

£1,383.28

£1,416.17

£341.16

31.7%

Growth

SportingBet

SBT

21/07/04

99.05

1053

£1,060.21

£0.00

11/08/05

359.00

£3,768.27

£3,768.27

£2,708.06

255.4%

Value

McAlpine (Alfred)

MCA

18/08/04

254.70

402

£1,041.01

£70.55

19/10/05

348.75

£1,398.84

£1,469.39

£428.38

41.2%

Value

Lambert Howarth

LMBT

05/10/04

272.00

398

£1,099.97

£43.78

19/10/05

221.00

£867.58

£911.36

-£188.61

-17.1%

Growth

Advanced Fluid Conn

AFC

03/11/04

24.65

4512

£1,129.77

 

29/11/05

5.60

£240.67

£240.67

-£889.10

-78.7%

Value

Taylor Woodrow

TWOD

03/11/04

242.39

459

£1,130.13

£57.84

29/11/05

336.36

£1,531.89

£1,589.73

£459.60

40.7%

Value

Bellway

BWY

08/12/04

724.40

168

£1,235.07

£78.88

20/12/05

1052.30

£1,755.86

£1,834.74

£599.67

48.6%

Value

Wagon

WAGN

23/02/05

182.85

783

£1,428.96

£70.47

16/02/06

203.00

£1,581.99

£1,652.46

£223.50

15.6%

Growth

Hyder Consulting

HYC

08/09/04

150.00

730

£1,112.48

£8.04

08/03/06

263.52

£1,916.20

£1,924.24

£811.76

73.0%

Growth

Carclo

CAR

24/03/05

67.50

1767

£1,210.69

£21.21

14/03/06

70.00

£1,229.40

£1,250.61

£39.92

3.3%

Growth

Hunting

HTG

07/01/05

184.75

850

£1,580.58

£37.40

15/05/06

365.00

£3,090.50

£3,127.90

£1,547.32

97.9%

Growth

Dart Group

DTG

17/05/05

295.70

461

£1,382.00

£32.04

23/05/06

369.86

£1,693.03

£1,725.07

£343.07

24.8%

Value

Wyndeham Press

WDSW

20/10/05

114.43

1756

£2,031.35

£29.85

05/06/06

155.00

£2,721.80

£2,751.65

£720.30

35.5%

Value

Alumasc Group

ALU

21/06/05

158.50

1217

£1,950.59

£113.18

22/06/06

152.00

£1,837.84

£1,951.02

£0.43

0.0%

 

Totals

 

 

 

 

£33,249.00

£1,253.77

 

 

£42,077.21

£43,330.98

£10,081.98

30.3%

 

2.2        Current holdings[1]

 

Type

Company

EPIC

Purchase Date

Price

# Shares

Total Cost