Portfolio Performance 2015/2016
The portfolio generated a total return of +20.9% in the year ending March 2016. In comparison the FTSE All Share lost -7.3%.
The collapse in oil & commodities prices and Chinese economic uncertainty provided investors with plenty of obstacles throughout the year. Our decision to stay clear of such areas and focus on high quality businesses allowed us to outperform the market by a considerable margin. In our portfolio; Mortgage Advice Bureau gained +103%, Google +42% and RightMove +41%.
Our position in Barclays lost 40% following a tough Q4 for UK banks. This was followed by a decision to cut dividends while undergoing another round of restructuring. Shares in the FTSE 100 financial services firm have since started to recover in a strong start to the new financial year.
We bought into the IPO of Mimecast, the cloud-based email security and management firm. We have followed the company for several years as a private business and decided to make an investment following their listing on the NASDAQ.
We mentioned in our report last year that we intended to reduce our exposure to managed funds. This reallocation was largely completed during the year. The decision has so far proved a good one, as the direct investments in individual businesses have significantly outperformed the performance generated by managed funds.