Model Portfolio Performance 

On January 18 2015, I published a post on Seeking Alpha, an equity research platform where insights are provided by contributor base of investors and industry experts. I recommended ten (10) stocks that were part of my long term (i.e. 10 years) buy and hold investment strategy. These stocks were recommended to my clients as well. It was an experiment to prove that one can achieve above-average returns by investing long term in good quality stocks.

We always seek above-average investment performance, but how to achieve it remains a major question. I believe that attempting to achieve superior long term returns by hitting a few home runs is unlikely to succeed. Rather, striving to do little better than average every year has a higher probability to succeed.

The link to the Seeking Alpha post is (Timestamp: Jan. 18, 2015 9:19 PM ET):

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  • Sharpe Ratio (Daily – Annualised) : 0.59 as of 28 Jan 2021
  • Sortino Ratio (Yearly) : 1.18 as of 28 Jan 2021
  • Volatility (Annual) : 13.41% as of 28 Jan 2021
  • As of June 2020, two of the ten stocks were acquired.
  • Allocated over 8 different sectors
  • Fundamental Research Based Analysis
  • Sector Specific Research
  • Buy and Hold Method
  • Highly Scalable
  • Zero Leverage

The investment performance report has been prepared and presented in the following manner:

  • Gross-of-Fees Returns has been used for reporting
  • Dividends inflow from the individual stocks has been taken into consideration to calculate the overall performance
  • Basic Rate of Return has been calculated by taking the cumulative return over the duration of the portfolio. The formula used to calculate the total return : (Portfolio Value Today – Starting Value of the Portfolio)/Starting Value of the portfolio
  • To calculate the annualised total return we have used the following formula  (1+Cumulative Return) ^ (365/Total number of days portfolio held) -1

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Further Information

  • Barrick Gold acquired Randgold Resources in September 2018. The share-to-share merger deal was valued at $18.3 billion. 6.120 shares of Barrick Gold limited was allocated to every Randgold Resources shareholder. The shares are listed in NYSE. As this is a UK Large Cap Portfolio, the shares were sold at the last traded price of £65.46.
  • Takeda Pharmaceutical Company acquired Shire Plc for $62 Billion or $66.22 per share on April 25, 2018. The final agreement was reached on 8 May 2018. Each shareholder of Shire Plc was offered $30.33 per share in cash and 0.839 in Takeda Share. It also included the debt of Shire.  
  • Aberdeen Asset Management was merged with Standard Life on 14 August 2017 in an all-share merger. The name of Standard Life was changed to Standard Life Aberdeen. Under the terms, every Aberdeen shareholder will receive 0.757 of new Standard Life ordinary shares. Based on the exchange ratio and the closing price of 378.5p per Standard Life share on March 3, 2017, the merger values each Aberdeen share at 286.5p. As the Standard Life did not qualify the investment parameters, the shares were sold.

Risk Disclaimer

  • Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this blog post (article), will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any information contained in this blog post (article) serves as the receipt of, or as a substitute for, personalised investment advice. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request. Independent researh firm has evaluated our results to avoid any bias. 
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