The Bounceback Portfolio invests in the 10 worst performing FTSE 350 stocks of the previous year and holds them for the 3-month period, January-March.
The Bounceback Portfolio for 2016 recorded the best performance ever for the strategy: a 3-month return of 38.5%, compared with a FTSE 350 Index return of -1.4% for the same period.
The following table lists the ten worst performing FTSE 350 stocks in 2016. These are the ten stocks that will comprise the 2017 Bounceback Portfolio.
Return in 2016
Return since 31/12/2016
Restaurant Group (The)
Sports Direct International
International Personal Finance
IG Group Holdings
McCarthy & Stone
The final column gives the returns for the individual stocks for the first six days of the 2017. The portfolio as a whole has seen a return of 2.4% for the first six days of 2017, against a return of 1.9% for the FTSE 350 Index.
The Bounceback Portfolio is meant to be held until the end of the March 2017, but it is good to see that it has started the year well so far.
The following table lists the five FTSE 350 shares that have the best returns in October over the last ten years. For example, Diageo has an average return of 3.6% for the month of October. Each stock has risen in at least eight of the past ten years in October – Diageo is the only stock in the FTSE 350 whose shares have risen every October in the past ten years.
The following table lists the three FTSE 350 shares that have the worst returns in October over the last ten years. For example, Grainger has an average return of -8.3% for the month of October. All three stocks have fallen in eight of the past ten years in October.
An equally-weighted portfolio of the above strong October stocks would have out-performed an equally-weighted portfolio of the above weak October stocks by an average of 10.3 percentage points in October for the past ten years.
The 2013 edition of the Almanac looks at the historic monthly performance of the FTSE 350 sectors. Here we look at the Travel & Leisure sector.
The following chart plots the average out-performance of the FTSE 350 Travel & Leisure sector over the FTSE 100 Index by month since 1999. For example, since 1999 on average the sector has out-performed the FTSE 100 Index by 2.1 percentage points in November.
The strongest months have been November and December – the sector has under-performed the market only three times in November in the last 14 years.
The sector has no consistently weak months; although the sector has under-performed the market by an average of 2.6 percentage points in October, the sector has actually out-performed the market that month in eight of the past 14 years.
The 23 stocks in the FTSE 350 Travel & Leisure sector [NMX5750] are-
Betfair Group [BET]
Bwin.Party Digital Entertainment [BPTY]
Millennium & Copthorne Hotels [MLC]
Compass Group [CPG]
Mitchells & Butlers [MAB]
Domino’s Pizza UK & IRL [DOM]
National Express Group [NEX]
Playtech Ltd [PTEC]
Enterprise Inns [ETI]
Rank Group (The) [RNK]
Restaurant Group (The) [RTN]
Go-Ahead Group (The) [GOG]
Stagecoach Group [SGC]
Greene King [GNK]
TUI Travel [TT.]
InterContinental Hotels Group [IHG]
Wetherspoon (J D) [JDW]
International Consolidated Airlines Group SA [IAG]