Below are the MATS portfolios with status at the end of September, 2018:
- Four portfolios are established so far this year, at the beginning of January, April, July and now also for October.
- A new portfolio is added every quarter and kept for one year. This means that there will be four portfolios running continuously.
- Updates of the portfolios are usually done on a monthly basis (at the end of the month), together with relevant comments and views on the general performance compared to the market. There will also be comments on individual stock performance and how single stocks affect the total performance.
You can read more about how the portfolios are established and managed here: https://stockbargains.net/stock-bargains-portfolios
Q1 MATS Portfolio (from January 5th, 2018):
Comments on Q1 MATS Portfolio:
Stocks included in the portfolio are picked from this list: Top Stock Bargains Watch List, Jan 5th 2018
The portfolio had a quite surprisingly drop of nearly three percent in September. It was surprising since the overall market had a slight gain of 0,4 %. This results in a total underperformance vs the S&P 500 Index of five percent year-to-date. Last month there were five out of 12 stocks with positive gains so far this year, at the end of September it is only three with positive gains. Much of the reason for the portfolio’s drop of three percent since last month lies in the performance of AMAG Pharmaceuticals Inc. (AMAG), it nearly lost half of its gain in one month, from 68 % to 38 %, and Sorrento Therapeutics Inc. (SRNE), which was down about 22 % last month. When only three out of twelve have positive gains, it is yet another reminder of the importance of diversifying. But it also shows the power of diversifying, since there still is a positive gain of 1,2 % overall, even though there are nine out of twelve stocks with losses.
The risk adjusted portfolio performs better and in line with the rest of the market, strengthening its gains from 5,7 % to 6,7 % year-to-date. No stocks were sold this month, so this has no effect. But neither SRNE or AMAG has been in the risk adjusted portfolio since February and June, so their negative performance in September will not affect the overall performance. In other words, the remaining stocks perform more or less in line with the market.
Q2 MATS Portfolio (from April 3rd, 2018):
Comments on Q2 MATS Portfolio:
Stocks included in the portfolio are picked from this list: Top Stock Bargains Watch List, April 3rd 2018
Just like the Q1 Portfolio, the Q2 Portfolio also had a quite surprisingly drop of nearly three percent in September. It was surprising since the overall market had a slight gain of 0,4 %. Totally so far, for the first six months, the result is in line with the market (a gain of 10,8 % vs S&P 500 with 11,5 %). Just like last month, nine out of sixteen stocks have had gains so far. NIC Inc. (EGOV) is partially responsible for the three percent-drop reducing its gain from 26 to 11 %. Sorrento Therapeutics Inc. (SRNE) goes from being a gainer to a loser, down from +8,8 % to -13,7 %. The Buckle Inc. (BKE) drops from a gain of 18 to six percent. Advanced Energy Industries Inc. (AEIS) exceeds its loss from minus four percent to minus 17 %. Unisys Corp. (UIS) continues to exceed its gain, up from +79 % to 96 %, quite remarkable in just half a year! It is worth mentioning that UIS ranked on top of the Top Stock Bargains Watch Lists for several months in the beginning of the year (and it still does) with scores much higher than any other company.
In September, the risk adjusted portfolio was not either keeping up with the market, with a drop of one percent. This was the first month with a drop in the portfolio’s performance. But it still has a lead on the S&P 500 index of 4,4 % for the first half year (a gain of 15,9 % vs 11,5 %). Both AEIS, BKE and EGOV are still in the portfolio, and with their losses during last month the portfolio was unable to follow up its gain. No stocks had losses exceeding 25 % or reducing their +50 % gains with 1/4 (the rules for selling), in other words were no stocks sold.
Q3 MATS Portfolio (from July 2nd, 2018):
Comments on Q3 MATS Portfolio:
The Q3 Portfolio performed 2,7 % better than the overall market in September, with a gain of 3,2 percent. It still struggles a bit to close the gap towards the S&P 500 total gain since July 2nd, having a total gain of 4,3 % vs S&P 500 with 6,9 %. But as you can see from the chart above, the gap is a lot smaller now than at the end of July: After only one month there was an underperformance of about seven percent (!) Four out of nine stocks are gainers so far. Unisys (UIS) must take its portion of the credit for the portfolio’s rise in September, increasing its gain since July 2nd from 44 % to 58 %. EGOV goes from being a gainer of eight percent to a loser of 5 percent. Quite the opposite with GameStop (GME), going from losing into gaining territory, up from -9 % to +5 % totally. CJREF is reducing its loss from -20 % to minus 8 %. In other words, several of the stocks had good gains last month, contributing to the portfolio’s total increase.
The risk adjusted portfolio went from a slight gain of 0,7 percent at the end of August to a gain of 3,3 percent for the first three months (improving 2,6 % in September). It is now one percent behind the portfolio without risk adjustments because of FTS International Inc. (FTSI), which performs better now than when it was sold in August with a loss of 26,8 %. No stocks had losses exceeding 25 % or reducing their +50 % gains with 1/4 (the rules for selling), in other words does the portfolio contain the same stocks as ending August.
Q4 MATS Portfolio (from October 1st, 2018):
Comments on Q4 MATS Portfolio:
Stocks included in the portfolio are picked from this list: Top Stock Bargains Watch List, Oct 1st 2018
No other comments until next month, since this portfolio is new (established at October 1st).