MEL LE Fund 2017/18
The Middleton Enterprises Listed Equity portfolio grew by +26.5% from April 2017 to March 2018. In comparison, the FTSE All Share lost 2.6% in the same period. The portfolio started the year at a value of £16.1m and ended the year at £18m with £2.1m of funds withdrawn during the year. The portfolio generated a total profit of £3.9m. This is a record breaking year in both absolute and percentage returns. Assuming the portfolio’s currency exposure was perfectly hedged throughout the year, the performance would have been +34.3% with gains of £5.1m.
Our best performers were;
- Mortgage Advice Bureau +56%
- Mimecast +41%
- MasterCard +39%
Our worst performers in the year were;
- Provident Financial -21%
- Global Benefits Group -20%
- Dominos -15%
The wider stock market was broadly flat over the course of the year, following a very strong year for the market in 2016/17. Within the market however, we tended to see high quality growth stocks do very well. As investing in high quality businesses are the crux of our strategy, our portfolio benefited from this trend. Any poor performance from companies was met with harsh share price falls, in an unforgiving market. However, these falls were only company-specific, as this year will largely be remembered for its lack of macroeconomic activity. In general, the market tended to trade mostly sideways. Large macroeconomic events, which have provided great buying opportunities in recent years, were scarce.
We started the year with 9 companies in the portfolio. During the year we sold 3 companies and purchased 1. We added funds to 1 existing position for a total of 5 trades in the year, 7 trades less than last year. We ended the year invested in 7 companies, with £2m of funds available for investment.
Since April 1st 2013 the portfolio has grown by +162.5% and generated profits of £10.7m. We started with a portfolio of £3.4m and have since added a net total of £3.9m. After five years of investing, the portfolio is valued at a total of £18m. This performance equates to an annualised growth rate of +21.3% while the FTSE All Share has generated a CAGR of +2.9% in the same period.