MATS Strategy – Top Stock Bargains Performance Year-to-Date (per May 31st, 2018)

CONCLUSION SO FAR THIS YEAR: MATS Portfolio beating US Markets with 9,3 %

Overall Performance from January 5th (portfolio established) until May 31st:

  • MATS Portfolio: + 7,9 %
  • S&P 500 Index: – 1,4 %

This is the fourth edition of the development of the MATS Strategy so far this year. You’ll find earlier editions here: MATS Strategy – Performance per month and YTD

A very common question is, how to beat the stock market? You can read about the following in detail below, both in graphics and tables:

  • Performance of the MATS Strategy/Portfolio vs the main US Market Index (S&P 500). Companies in this portfolio are picked from and include all stocks from the Top Stock Bargains Watch List, and they stay in the portfolio as long as they qualify to be in the list.
  • Performance of every stock since the portfolio was established January 5th this year, both stocks that have been “bought” and/or “sold” during the period.

Quick statistics so far this year (until May 31st):

  • Since the release of my first list January 5th there have been 28 stocks included all together.
  • 18 out of the 28 stocks have had gains, and nine of them have had losses. One is unchanged (+0,2 %).
  • 20 of them have been “sold” and taken out of the portfolio during the period (they are taken out at the same time as they receive a below average MATS Score and drop out of the Top Bargains Watch List).
  • 19 new stocks have been “bought” and taken into the portfolio AFTER January 5th, three of them May 31st (they are taken in at the same time as they receive an above average MATS Score and qualify to get into the Top Bargains Watch List).
  • Worst performer so far (Year to Date) is MDC Partners Inc. (MDCA) with a loss of -52,6 %.
  • Best performer so far (Year to Date) is Sorrento Therapeutics Inc. (SRNE) with a gain of +53,9 %.
  • Average performance of all stocks included since Jan. 5th 2018: +7,9 %.
  • Performance of The S&P 500 Index since Jan. 5th 2018: -1,4 %.

Compared to the S&P 500 Index the MATS Strategy/Portfolio has outperformed the market with 9,3%.

The stocks that are picked qualify two important criteria:

  1. High quality financial performance (Earnings Yield + Return on Invested Capital and/or Net Working Capital making minimum 50 % of Market Cap Value)
  2. Big discount on stock price related to highest stock quote levels during the last three years.

These criteria replace the uncertainty of future estimates of companies, since both criteria do indicate a high safety margin.

You can get more information about the Top Bargains Watch lists and the Market Adjusted Total Score here:

MATS Portfolio Performance compared to the leading US Market Stock Index (S&P 500):


MATS Portfolio vs S&P 500

As you can see from the table and from the graph, there is one point where the total performance of the portfolio has performed weaker than the benchmark, and this was early in February. In late February it jumped up and performed much stronger again. In March it followed more or less the market index. Since early April the portfolio has increased its gains, and it achieved its biggest outperformance so far ending May with more than nine percent.

The following is worth mentioning:

  • Four of the six companies that were taken in April 3rd had more than 10 % gains from that date until May 31st.
  • Only one of them had a loss (CNCE: -1,3 %)
  • The biggest gain was 53,9 % (SRNE)

This explains much of the strong outperformance of the market index. It also explains why only one of these six companies still qualify to stay in the portfolio (which is EGOV):

  • A stock like SRNE with a gain of 54 % now got a MATS Score of only 55
  • SYNT (with a gain of 25 %) got a MATS of 76
  • The average score among the 32 companies from where the Top Bargains Watch List is selected was 81. Companies with a lower score than average drop out of the list and from the portfolio.

Performance of MATS Portfolio stocks, from January 5th until May 31st:

Gain/Loss YTD, MATS Portfolio(Click to enlarge)


Gain/Loss all stocks YTD, MATS Portfolio Table

As the awake reader may notice, making a calculation of every stock’s performance gives an average of 5,9 %. But this is when the performance of every stock is calculated independent of the time period it was kept in the portfolio. Therefore, to make it more relevant and the most correct, I have calculated every stock for its given time period by starting the portfolio January 5th with a (fictive) total of $ 10.000. At May 31st the total amount was $ 10.790, which equals to a gain of 7,9 percent.

Let’s connect! Invite to a discussion or ask a question! Please leave a comment before you leave, I would be more than happy to involve and get connected. Any investing related issue or stock talk is heartly welcome.

Last time I wrote that a new portfolio would be established from April 3rd: Both that one and another similar portfolio running from January 5th this year have been established, but I will release them very soon and let you get more information about them then. These portfolios will be based on the same criteria as the MATS Portfolio above, but it will be much easier to invest in stocks according to them because the stocks will be kept for one year. What is different is that the new portfolios also will take into account risk management by including gain-keeping and stop-loss principles. My intention is to establish a new portfolio every quarter, and to keep it for one year (maximum). Make sure you’ll be able to follow the portfolios from the start, by entering your e-mail address in the newsletter form at the right. Then you will not miss out on any of the updates or essential tips.

Next update when June has passed!

Is it possible to get a MATS calculation for other stocks too?

Yes, it certainly is!

The price of further MATS calculations (Market Adjusted Total Score):

  •  10 USD per calculationPay via PayPal in just one click:
  • 25 USD for three stocks (or the last available quarter plus the two last years for one stock). Pay via PayPal in just one click:
  • 49 USD for one stock compared to five competing stocks (picked by you). MATS Scores are calculated for all six stocks. For even more relevant comparison, MATS Score of the stock is also adjusted to the average market discount of the five other stocks (in replacement of the adjustment vs the S&P 500 Index). Pay via PayPal in just one click:

Please note: When making your payment, specify your order by naming the stocks/companies that you want a MATS Score for. Payments will be done through PayPal. Use this link (or one of the above ones) to start your payment: Any questions or issues regarding payment can be done to Thank you!