The idea of the Bounceback Portfolio is that a portfolio of the 10 worst performing FTSE 350 stocks in one year has historically beaten the index in the first three months of the following year. The selection of the Bounceback Portfolio stocks for 2014 was described in this earlier post.
The following chart shows the performance of the stocks in the Bounceback Portfolio 2014 over the first three months of the year.
The portfolio as a whole increased 9.2% in the first quarter 2014, which beat the -1.6% return for the FTSE 350 Index.
This means the Bounceback Portfolio strategy has now beaten the index in 12 of the past 13 years (the one failure was last year).
The 2013 edition of the Almanac explained the Bounceback Strategy, whereby a portfolio of the 10 worst performing stocks in the FTSE 350 in one year is held for the first three months of the following year.
The following table lists the 10 worst performing FTSE 350 stocks in 2013 (i.e. these comprise the Bounceback Portfolio for 2014).
On this day in 1982 Antofagasta listed on the LSE.
The following chart plots the average monthly out-performance of the shares over the FTSE 100 Index since 1988. For example, on average Antofagasta has out-performed the FTSE 100 by 2.0 percentage points in August.
The strongest month for Antofagasta shares relative to the market has been August (the shares have out-performed the market in this month in 14 of the last 25 years).
The weakest month for Antofagasta relative to the market has been May (the shares have only out-performed the market in this month in 9 of the past 24 years).