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Model Portfolio Review December 2020

Markets finished the year on a positive note with the S&P500 closing up 3.7% for the month. For the tumultuous, coronavirus-driven 2020, the Dow finished up 7.25%, the S&P500 surged over 16%. But the Nasdaq was the big stock index winner last year with a gain of more than 43%.

Who would have thought it possible that after the S&P500 and the Dow suffering their fastest 30% pullback on record in February and March, one index would be recording a 43% gain for the year?

Our aim with our model portfolios is to outperform the Australian All Ordinaries Index. With that in mind, let’s see how we performed

You can click on any of these names to learn more about the portfolio.

Aus All Ords+1.6%
Global Growth+4.0%
Dividend Growth+1.4%
Algo Portfolio-0.4%
Top 30+5.2%

With the exception of the Algo Portfolio all of our models outperformed the Australian All Ordinaries Index for the month of December 2020.

Once again, the best performing model was the Top 30 with a 5.2% gain. Of the 30 holdings, 20 ended up with gains and 10 with losses. The biggest winner was COHU with a gain of +32% closely followed by MC +23%, VCRA +22% and WK +21%

This portfolio continues to perform, month-in and month-out. It truly is amazing to see the performance it has achieved. We only started this in June of 2020, yet by the end of the year, it was up over 48%, beating even the best Index for the year – the Nasdaq.

The Global Growth Portfolio also did very well, gaining +4.0%. As a stock picker, it’s always nice to see you can add some value with your selections and improve returns for investors over the index. Big winners came from our holdings in Cadence Design Systems (CDNS) +17.3% and Schrodinger (SDGR) + 11.7%

The Dividend Growth Portfolio actually underperformed the All Ords with a gain of 1.4% vs 1.6%. But it was close. In addition to these capital gains, this model picked up dividends from 4 companies. We like getting dividends paid each month as it means every month the model has more cash it can use to buy more stocks with.

The algorithmic portfolio also underperformed and went backwards to the tune of -0.4%. We saw a couple of holdings suddenly drop on news announcements and the stop-loss rules kicked in which resulted in some churning of the portfolio. Lots of trades is rarely a good thing and this month highlights that fact.

If you want to learn more about any of these portfolios, click on the names above, or call your advisor who can discuss them with you.

Performance and profit calculations are theoretical and calculated by Capital 19 and do not reflect actual investments in the companies mentioned they also do not include the costs of commission or the effects of exchange rates or taxes. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Past performance is not a reliable indicator of future performance.

Disclaimer: Capital 19 Pty Ltd ABN 17 124 264 366 AFSL 441891 (‘Capital 19’) believes the information contained is reliable, however, no warranty is given as to its accuracy and persons relying on this information do so at their own risk. This communication is for general information only and was prepared for multiple distributions and does not take account of the specific investment objectives of individual recipients and it may not be appropriate in all circumstances. Persons relying on this information should do so considering their specific investment objectives and financial situations. Any person considering action based on this communication must seek individual advice relevant to their circumstances and investment objectives. Subject to any liability which cannot be excluded under the relevant laws. Any opinions or forecasts reflect the judgment and assumptions of Capital 19 and its representatives based on information at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future. The investment manager certifies that all the views expressed in this document accurately reflect their views about the companies and securities referred to in this document and that their remuneration is not directly or indirectly related to the views. Capital 19, its directors, representatives, employees or related parties may have an interest in any of the companies and securities in this document and may earn revenue from the sale or purchase of any financial product referred to in this document or any advice. Past performance is not a reliable indicator of future performance. Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this document is prohibited without obtaining prior written permission from Capital 19.