Wild’s Winter Portfolios 2020: we beat the market
Left behind by a broad rally in November, this year’s portfolios narrowed the gap last month.
8th January 2021 15:32
by Lee Wild from interactive investor
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Left behind by a broad rally in November, this year’s portfolios narrowed the gap last month.
Investors remain stuck on a stock market rollercoaster with more stomach-churning twists and turns than any amusement park ride. A pandemic crash, rapid recovery, then a pause followed by a sharp dip, and now another steep ascent. What could possibly happen next?
For Wild’s Winter Portfolios, the final month of a truly horrible 2020 was blessed with success. Both the consistent and aggressive baskets of shares rose sharply, outperforming the FTSE 350 benchmark index.
That was welcome relief, having lagged the wider market from 9 November when Pfizer announced its Covid vaccine. That sparked a rush into cheap stocks hit hard by the pandemic, leaving quality stocks that make up Wild’s portfolios behind.
December was a catch-up month, with the consistent portfolio up 7% and the higher-risk aggressive portfolio up 5.3%. That leaves the pair up 4.9% and 7.5% respectively this winter. However, they’ve got some way to go to match the FTSE 350. While the benchmark index was up just 3.6% in December, a 12.3% gain in November has it up 16.4% for the first two months of this year’s seasonal strategy.
As always with these portfolios, the primary aim is to return profit. Beating the benchmark comes second, but there are still four months for it to happen.
Wild’s Consistent Winter Portfolio 2020-21
Source: interactive investor. Past performance is not a guide to future performance
Only one of this year’s consistent portfolio stocks posted gains in November, and insurer Admiral (LSE:ADM) rose for a second month in December, adding 1.7% for a combined increase of 5.7%.
But that consistency was put in the shade by double-digit percentage gains for three FTSE 100 stars - London Stock Exchange (LSE:LSE), speciality chemicals firm Croda International (LSE:CRDA) and technology conglomerate Halma (LSE:HLMA). That was enough to recoup first-month losses and leave the trio up 8.8%, 9.3% and 3.4% since the end of October.
Portfolio debutant Safestore (LSE:SAFE) remains the only laggard. The self-storage provider appears in both this year’s portfolio, given it has risen in each of the past 10 winters and returned an average of 20.5% each time. But it is currently lacking a catalyst to trigger upside. Might full-year results, pencilled in for 14 January, reignite interest in the shares? CEO was Frederic Vecchioli was optimistic when he last reported in November.
Wild’s Aggressive Winter Portfolio 2020-21
Source: interactive investor. Past performance is not a guide to future performance
Every constituent in the aggressive portfolio had a positive month, but it was London Stock Exchange that stood out. Up 11.1% in November, it enjoyed a resurgence in buying in the run up to Christmas. Among those splashing out on shares in the stock exchange and financial information provider was chairman Dominic Blakemore. He spent £80,000 on LSE stock at 8,620p.
After a strong first month, latex gloves firm Synthomer (LSE:SYNT) and precision instrumentation company Spectris (LSE:SXS) continued to surge. Caroline Johnstone, chair at the former, splashed out £49,000 on shares, while Spectris sold two businesses for almost £300 million. Since this year’s winter portfolios launched, the pair are up 19% and 14% respectively.
Technical products and services company Diploma (LSE:DPLM) has disappointed with its contribution so far this season. However, the shares have a great track record of positive winter returns, but never move up in a straight line. A 3.4% gain in December is encouraging.
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