Investment Portfolio Overview – April 2020

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April turned out to bring my largest % gain ever so far, which is certainly relieving after the previous 2 months of aggressive sell-off.
If global governments now would finally start to try saving the economy again and stop running the saving-the-health-care-system-at-all-costs strategy, we should see further gains in the weeks and months to come.
Even after recent gains, these should still be fantastic times to inject cash into the market. Unfortunately, I only had ammunition for one shot, which I took with great precautions.
On the other hand, I experienced defaulting on one of my positions for the first time.
So, all in all, lots of action going on last month – you can read about all the details in the post below.
I hope you enjoy reading my investment portfolio review for April 2020.
Let me know any questions in the comments section below

Table of Contents

Performance

Performance April 2020

YTD Performance Dan Schenk Life Investment Trust - Investment Portfolio Review April 2020

April has finally seen sharp gains across the board again, after the previous catastrophic 2 months. Global markets bounced back from their March lows and a few big winners did the rest to elevate my portfolio on the YTD performance above 3 out of the 4 benchmarks. My portfolio is up 13.0% on the month, my best % gain ever so far. The benchmarks didn’t do bad either, but none of them was able to beat my portfolio in April.

  • FTSE UK All Share Index: 4.8%
  • FTSE 100: 5.2%
  • FTSE Mid 250: 9.2%
  • Vanguard Total World Stock ETF: 10.3%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review April 2020

Looking at the cumulative performance, my portfolio is still in the red with a -18% decline since August 2017. That is lower as I obviously would like to see it. However, the recent developments give some hope, that by the end of the year I may be in the green again. 3 out of 4 benchmarks are also still in the red with only the Vanguard ETF already making the break-even.

  • FTSE UK All Share Index: -12%
  • FTSE 100: -21%
  • FTSE Mid 250: -17%
  • Vanguard Total World Stock ETF: 0%

Biggest Gainers

Asiamet Resources Limited, +195%
Exploration and development firm Asiamet Resources Ltd has seen a phenomenal bounce back from its March lows. However, the company is still not turning over any revenue from any of its operations, so I remain on the sidelines watching for further updates bevor I conclude any investment decisions.

N Brown Group PLC, +70%
Online fashion retailer N Brown was hit harder than almost any other company by the covid19 situation. Even brighter do I see these recent developments in its share price. Do we already see the begin of a recovery? I’m keen on adding to this position and will attempt to do so as soon as I’m having cash available.

Thor Mining PLC, +67%
We have seen huge swings in its share price before, and also last month Thor Mining made it into the top 3 gainers yet again. Not disregarding the fact, that the firm still doesn’t turn over any revenue, which means for me sitting at the sidelines to watch further developments.

Biggest Losers

BP PLC, -9%
With the oil price being slashed to essentially 0 right now, big oil firms like BP have obviously taken a huge hit, so it is not surprising to see 2 of them in the top 3 losers last month. Now it will depend on how resilient these companies are prepared aginst these large scale scenarios. BP is not trading at the right price right now for me to add to this position, so I will just sit it out and wait for the price to return back to normal.

Standard Chartered PLC, -8%
With the global economy essentially in a meltdown similar to the 2008 crisis, there’s a huge strain on financial institutes like Standard Chartered as well. The valuation now does look quite attractive with a book-to-market ratio of only 0.3. However, I think there are even better value investment opportunities out there right now, so I’m not having this on my list to add to my position at the moment.

Royal Dutch Shell PLC, -5%
The second big oil firm in the top losers 3 last month, which is being hit by the sell-off in oil prices. It trades at a similar book-to-market ratio as BP, however at a much better PE ratio of only 9.3. Hence, I’m rather looking to add to my position in Royal Dutch Shell than BP right now.

Holdings

Top Holdings

Below the Top 10 holdings as of April 2020.

Bit of a re-shuffle in the top 10 again last month.
For once, Cash dropped out of the Top 10, because I invested some of it into Kier Group PLC (see new positions below). This resulted in Kier Group now making up 4% of my portfolio and moving up to position 9 in the charts.
Also, Iqe PLC made it back into the Top 10, after falling out of it the month before.
Consequently, Imperial Brands got pushed out of the Top 10 again.

NrHolding% of Portfolio
1Scottish Mortgage Investment Trust PLC10%
2Asian Total Return Investment Company PLC 8%
3Fidelity China Special Situations PLC 8%
4Frontier Developments PLC6%
5Standard Chartered PLC (LSE)5%
6Evraz PLC 4%
7Iqe PLC4%
8Tr European Growth Trust PLC 4%
9Kier Group PLC4%
10Fresnillo PLC4%
Portfolio Exposure Dan Schenk Life Investment Trust  - Investment Portfolio Review April 2020

New Positions

Kier Group PLC @80p
From the little cash I had left in my account, I was only able to make one shot. Kier Group seemed to have the biggest risk-reward-ratio available.
For once, its book-to-market ratio is at only 0.3, while its PE ratio is at 1.44. These values are so low, that there isn’t really much room for a further drop in share price unless the firm goes bankrupt. This is deemed as highly unlikely though because Kier has been tasked with important infrastructure projects from the UK government. So even if the firm would see itself struggling further throughout 2020 and beyond, the government would likely step in and bail them out providing cheap credit facilities or other advantages.
My target price for Kier is at 700p, which would be a 700%+ gain vs current levels.

Closed Positions

NMC Health @0p
NMC Health, the medical care company operating in the middle east, got first suspended for trading in March and now went into administration in April. Consequently, the firm’s new board of directors requested to delist the firm from the exchange, which essentially means I’m defaulting on my position. Not a big problem, if you have a good diversification strategy. This position never made more than 2% of my overall portfolio, so taking this hit doesn’t hurt my overall portfolio performance much.


I hope you find my investment portfolio recap for April 2020 useful. How did your portfolio perform in March and have you bought or sold any shares? Let me know in the comments section below, I’d love to discuss.

If you want to read more about investing in general, why not start with my guides to Value Investing, Growth Investing or Income Investing?

Struggling with your investment returns? Good news! You can now invest in the Dan Schenk Life Investment Trust to truly bring your investment returns to the next level. Or if you rather want to conquer the market yourself, book your free investment consultation below. No payment details needed – no strings attached!

And as always, please let me know any questions in the comments section below.

Dan Schenk

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