Performance for the 2018/19 Financial Year
The MEL stock market portfolio generated returns of 24% while the broader stock market returned 2% over the 2018/19 financial year. This takes our 6-year CAGR to 22% vs the markets equivalent figure of 3%. We experienced a positive FX impact of 5%.
Our Best Performers in the Year;
- MasterCard +44%
- Mimecast +38%
- Google +22%
Our Worst Performers in the Year;
- MAB -9%
- GBG Group -3%
- Gym Group +5%
Following a fairly monotonous year in 2017/18, the market sprung to life with increased volatility this year. We saw the FTSE All Share gain 10% in the opening month of the year, its largest one-month gain in over 18 months, before then falling 15% by Christmas. Our portfolio followed a similar trend, being 20% up in the first 6 months of the year before dropping down to a breakeven position by Christmas. This fall in the market allowed us to redeploy funds as we purchased shares in Dot Digital, On The Beach and The Gym Group. After trimming our two most expensive stocks, Mimecast and MAB, earlier in the year.
We started the year with 7 investee companies under our strategy. We highlighted in last year’s report the need to prioritise adding high-quality names to our portfolio. We aim to be invested in 10 businesses if opportunities allow. The volatility we experienced in the year gave us good opportunities to purchase 2 businesses, while one of our companies was taken private via an acquisition. Including this, we made 6 trades in the year, one less than last year and ended the year invested in 8 companies.
Since the 1st of April 2013, our portfolio has grown in value by 224% while the market is up 18% over the same time period.