Portfolio Performance (Month 18)
Over the 3 months to 30 April 2016 my share portfolio has continued to outperform the benchmark indices, returning 11.9% for the 3 month period compared to 6.5% for the All Ordinaries Accumulation Index and 9.7% for the Small Ordinaries Accumulation Index.
Some of the better performers during the period were:
- INTECQ (ITQ), up 74% over the 3 months on the back of strong interim results (net profit before tax up 83%) and some contract wins for its gaming services and technology – there appears to be plenty of runway for continued growth in the future;
- Codan (CDA), up 67% over the 3 months driven by contract wins and a very strong business performance update (net profit after tax expected to be up 57% for FY16 compared to FY15);
- Service Stream (SSM), up 62% for the period primarily due to contract wins, a capital return announcement and solid first half results; and
- MACA Limited (MLD), which was up 57% for the three months.
The main drags on the portfolio return during the period were:
- Brierty Limited (BYL), down 32% over the three months and definitely under review as its looking more and more like a poorly managed company rather than just a downtrodden mining services company;
- Reckon (RKN), down 26% for the period and a stock which I have now sold out of and discussed at length here; and
- Watpac (WTP), down 23%, but which I feel has been unfairly caught up in the mining services sector pummeling despite most of its business coming from building construction (where it continues to win new projects) rather than mining services.
I continue to be approximately half invested in cash.