Investment Portfolio Overview – February 2021

Investment Portfolio Review February 2021 Banner

February 2021 was a solid month for the overall market. Most indices are in the green, but my portfolio was once again coming out on top of them all with a huge gain on the month. This puts me up nicely on the year so far. On top, I was able to reduce my overarching cash position a little bit, yet it remains my biggest holding right now. This year I’m certainly prepped better for the next storm than last year, so I’m looking forward to some nice pullback to get the rest of my cash back into the market.
I hope you enjoy reading my investment portfolio overview for February 2021.
Let me know any questions in the comments section below.

Table of Contents

Performance

Performance February 2021

February 2021 Performance Dan Schenk Life Investment Trust - Investment Portfolio Review February 2021

February keeps continuing the positive trend of the past 4 months. In fact, it has been an excellent month for my portfolio, which is up 8.6% on the month.
That’s far ahead of any of my benchmarks, however, those showed solid performance, too. All green keeps the sorrow away.
Here are the benchmarks:

  • FTSE UK All Share Index: 2.0%
  • FTSE 100: 2.7%
  • FTSE Mid 250: 3.4%
  • Vanguard Total World Stock ETF: 2.7%
2021 Performance Dan Schenk Life Investment Trust - Investment Portfolio Review February 2021

Looking at the performance so far this year, I’ve already cracked the 10% gain threshold after only 2 months. My portfolio is currently up 11% on the year. 2021 is starting with a bang!
The benchmarks are all in the green as well, but clearly lacking behind.
Here are the benchmarks:

  • FTSE UK All Share Index: 1%
  • FTSE 100: 1%
  • FTSE Mid 250: 2%
  • Vanguard Total World Stock ETF: 2%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review February 2021

Looking at the cumulative performance, I now finally managed to dethrone the marvellous Vanguard Total World Stock ETF and claim the number one spot amongst the benchmarks. This is the first time since July 2018, so truly an important milestone for my portfolio.
My portfolio is up 43% since its injection in 2017.
Only the FTSE 100 is still in the red and I begin to wonder when we finally see a full recovery for the largest UK businesses.
Here are the benchmarks:

  • FTSE UK All Share Index: 2%
  • FTSE 100: -12%
  • FTSE Mid 250: 6%
  • Vanguard Total World Stock ETF: 36%

Biggest Gainers

This rank is based on the gain relative to my overall portfolio, while the gain of the individual position is stated in brackets.

Saga PLC, +2.94% (Position: +52%)
Saga PLC, which specialises in products for the over-50, had a stunning run in the past 3-6 months. Now it is slowly closing in on its intrinsic value with the book to market ratio being at 0.9 right now. Looking at the PE ratio it is still cheap with only 3.1, however, I won’t be adding to my position anytime soon, giving the lack of a positive Return on Assets at the moment.
My target price of 1500p is still far ahead, so I might add to this position sometimes in the future when ROA returns back into the positive region.

  • Current Price: 390p
  • Target Price: 1500p
  • Plan to add to position: N/A
  • Book to Market Ratio: 0.9
  • P/E Ratio: 3.1
  • ROA: N/A
  • Dividend Yield: 4.6%
  • Investment Type: VALUE

Cineworld Group PLC, +1.35% (Position: +26%)
Cineworld, the cinema chain, also showed solid performance in the past 3 months. It is still very cheaply priced right now with a book to market ratio of only 0.6 and a PE of 5.4. Hence, I’ll be willing to add further to my position at the next dip and ride the journey to my target price of 180p.

  • Current Price: 100p
  • Target Price: 180p
  • Plan to add to position: 60p
  • Book to Market Ratio: 0.6
  • P/E Ratio: 5.4
  • ROA: 1.4%
  • Dividend Yield: 6.7%
  • Investment Type: VALUE

easyJet PLC, +1.20% (Position: +35%)
easyJet, the budget airline had a strong month in February, with people eying desperately that the government allows travel soon again. Which would finally get airlines the much-needed customers again, after the struggles during the pandemic.
easyJet is now already closing in on my target price of 1200p, so I won’t add further to my position but am getting ready to sell and reap my profits.

  • Current Price: 1000p
  • Target Price: 1200p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.8
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: 5.7%
  • Investment Type: VALUE

Biggest Losers

This rank is based on the loss relative to my overall portfolio, while the loss of the individual position is stated in brackets.

Scottish Mortgage Investment Trust PLC ORD 5P, -1.07% (Position: -10%)
Scottish Mortgage, the Fund which was powering much of my portfolio over the years, has seen tremendous growth last year with being the biggest gainer in the FTSE 100. Now it is only natural to experience some form of pullback. It is currently a bit further away from my target price of 1600p than it was in January, but I still won’t add to my position on this one as it is already my largest holding.

  • Current Price: 1190p
  • Target Price: 1600p
  • Plan to add to position: N/A
  • Book to Market Ratio: N/A
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: 0.3%
  • Investment Type: GROWTH

Iqe PLC ORD 1P, -0.33% (Position: -7%)
Semiconductor wafer and materials supplier IQE also experienced a bit of a pullback after a solid strong few months. Unfortunately, the business isn’t quite over the hill yet in terms of its way back to profitability, so I won’t add to my position anytime soon. With the target price of 270p still being a good range away, there should be ample time for it to get back on track which then might lead to me topping up on the shares once again.

  • Current Price: 75p
  • Target Price: 270p
  • Plan to add to position: N/A
  • Book to Market Ratio: 2.3
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: N/A
  • Investment Type: VALUE

Bank of Georgia Group PLC, -0.23% (Position: -13%)
Bank of Georgia is struggling a bit amind the covid pandemic, hence its share price is dropping off a bit from its recent highs. This opens good opportunities to stock up as we’re looking at a strong ROA of 2.7%, cheap PE ratio of 4.3 and a valuation at about intrinsic value. The huge dividend yield of 12.5% makes the bargain even better. I’m planning to add to my position at the 850p level.

  • Current Price: 992p
  • Target Price: 2300p
  • Plan to add to position: 850p
  • Book to Market Ratio: 1.0
  • P/E Ratio: 4.3
  • ROA: 2.7%
  • Dividend Yield: 12.5%
  • Investment Type: VALUE

Holdings

Top Holdings

Below the Top 10 holdings as of February 2021.

Cash is still on number one, however, I was able to reduce the position a bit last month.
Other than that, airlines are coming back to business and hence are back in my top 10 list, kicking out Iqe and National Express Group.

NrHolding% of Portfolio
1Cash10%
2Scottish Mortgage Investment Trust PLC8%
3Saga PLC7%
4Kier Group PLC7%
5Cineworld Group PLC5%
6Royal Dutch Shell PLC5%
7Evraz PLC4%
8Just Group PLC4%
9easyJet PLC4%
10International Consolidated Airlines Group SA (LSE)3%
Portfolio Exposure - Dan Schenk Life Investment Trust - Investment Portfolio Review February 2021

New Positions

2 new positions in February. Let’s break them down.

International Personal Finance PLC @78p

My first entry into International Personal Finance, a subprime lender with truly magnificent fundamentals. It is currently trading at a book to market ratio of only 0.4 and a PE ratio of 2.5. But the ROA of 5.4% is what really makes this business special. On top comes a solid dividend yield of 5.8%.
I’m planning to scale further into this position at the next drop, down to 60p.

  • Price entered: 78p
  • Target Price: 210p
  • Plan to add to position: 60p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 2.5
  • ROA: 5.4%
  • Dividend Yield: 5.8%
  • Investment Type: VALUE

TP ICAP PLC @200p

Also a new addition to my portfolio, TP ICAP, an interdealer broker trading at a cheap book to market ratio of 0.7 and a PE ratio of 6.7. Admittedly, the ROA isn’t the best with only 0.1%, but I figured this may improve in the future and until then I’m being paid 8.4% dividends. So, I’m looking to add further to my position at 185p.

  • Price entered: 200p
  • Target Price: 390p
  • Plan to add to position: 185p
  • Book to Market Ratio: 0.7
  • P/E Ratio: 6.7
  • ROA: 0.1%
  • Dividend Yield: 8.4%
  • Investment Type: VALUE

Closed Positions

I didn’t sell any of my positions in February.


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I hope you find my investment portfolio recap for February 2020 useful. How did your portfolio perform last month 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?

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

Dan Schenk

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