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.
Let’s see how the Bounceback Portfolio fared in 2017.
Performance in 2017
The following table lists the ten worst performing FTSE 350 stocks in 2016. These ten stocks form the 2017 Bounceback Portfolio.
The final column in the table also gives the returns for each stock for the period Jan-Mar 2017. For example, Capita shares fell 56.0% in 2016, and then rose (bounced back) 6.3% in the first three months of 2017.
|Restaurant Group (The)||RTN||-52.7||2.8|
|Sports Direct International||SPD||-51.7||10.6|
|International Personal Finance||IPF||-40.4||-5.0|
|IG Group Holdings||IGG||-38.4||0.6|
|McCarthy & Stone||MCS||-36.6||17.4|
For reference, the performance of the FTSE 350 Index is also shown for the same periods.
As can be seen, the majority of the bounceback stocks outperformed the Index in the first quarter of 2017.
The performance of the 10 Bounceback Portfolio stocks for Jan-Mar 2017 is shown in the following chart.
On average the Bounceback Portfolio stocks had a 3-month return of 8.6%, compared with a FTSE 350 Index return of 2.9% for the same period.
So, an equally-weighted portfolio of the ten bounceback stocks would have outperformed the FTSE 350 Index by 5.7 percentage points over the target first three months of 2017.
Bounceback portfolio performance 2003-2017
The Bounceback strategy has been tracked since 2003. The following chart shows the comparative performance of the portfolio and the FTSE 350 Index for each year since 2003.
Since 2003, the Bounceback Portfolio has under-performed the index only twice (in 2013 and 2015).
The following chart shows the cumulative performance of the portfolio from 2003.