The Santa Rally Portfolio 2015

The Santa Rally describes the tendency of the stock market to perform strongly in the final two weeks of the year (more info).

The Santa Rally Portfolio comprises the 10 best performing FTSE 350 shares over the Santa Rally period (i.e. roughly the last two weeks of the year) over the last 10 years. The characteristics of the 10 stocks in the portfolio are:

  1. All 10 stocks have positive returns over the two-week Santa Rally period for every year since 2005.
  2. The 10 stocks have the highest average returns of all FTSE 350 stocks over the Santa Rally periods of the last 10 years.

The following table lists these ten shares and their average returns over the Santa Rally periods for the last 10 years.

Company TIDM Avg Rtn(%)
Ashtead Group 7.3
FirstGroup 6.6
Vesuvius 6.4
Croda International 5.9
Informa 5.3
British Land Co 4.9
Spectris 4.8
Pennon Group 4.4
G4S 4.4
Balfour Beatty 4.2

The following chart compares the performance of the Santa Rally Portfolio with the FTSE 350 Index for the past 10 years.

Santa Rally Portfolio [2015]Notes:

  1. The FTSE 350 Index has had positive returns in every Santa Rally period since 2005 except 2012. The average return for the Index over this period for the last 10 years is 2.2%. Last year, in 2014, although the Index was down 1.7% in December as a whole, it actually rose 4.3% in the second two weeks of the month.
  2. The Santa Rally Portfolio has had positive returns every year since 2005. The average return for the Portfolio over the last 10 years is 5.4%, thus out-performing the FTSE 350 each year by 3.2 percentage points.

More on the Santa Rally.

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