The final column in the above table also gives the returns for each stock for the period Jan-Mar 2016. For example, Anglo American shares fell 75.1% in 2015, and then rose (bounced back) 84.4% in the first three months of 2016.
The performance of the 10 Bounceback Portfolio stocks for Jan-Mar 2016 is shown in the following chart.
On average the Bounceback Portfolio stocks had a 3-month return of 38.5%, compared with a FTSE 350 Index return of -1.4% for the same period.
Bounceback portfolio performance 2003-2016
The Bounceback Portfolio has been running since 2003. The following chart shows the comparative performance of the portfolio and the FTSE 350 Index for each year.
As can be seen the Bounceback Portfolio scored its greatest out-performance of the FTSE 350 in 2016.
Since 2003, the Bounceback Portfolio has under-performed the index only twice (2013 and 2015).
The following chart shows the cumulative performance of the portfolio from 2003.
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).