Investment Portfolio Overview – January 2021

Investment Portfolio Overview January 2021_banner

The new year of 2021 started well for my portfolio, although all benchmarks started the year in the red. On top, I was quite busy getting out of some of my positions and also entering new ones. I’m going into this year with a huge cash position, which I’m just waiting to get back into the market once the opportunity arises.
Other than that, I’m mostly following my value investing strategy, which already brought me solid returns in 2020, why change a winning system now?
I hope you enjoy reading my investment portfolio overview for January 2021.
Let me know any questions in the comments section below.

Table of Contents

Performance

Performance January 2021

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

2021 started in the green, much to my pleasure. If we remember back in Jan 2020 Corona just started to creep up and markets slowly began to falter.
Luckily, 2021 starts on a much softer note. While all benchmarks are slightly down, my portfolio is nicely in the green, up 2.6%. Pretty much my favourite outcome, nothing better than beating the markets.
Here are the benchmarks:

  • FTSE UK All Share Index: -1.2%
  • FTSE 100: -1.7%
  • FTSE Mid 250: -1.3%
  • Vanguard Total World Stock ETF: -0.2%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review January 2021

Looking at the cumulative performance, my portfolio is still on the 2nd position after the Vanguard Total World Stock ETF, however now merely 1% point below it. My portfolio is up 32% over this period and I will be disappointed if I won’t be able to come out in the first position during this year. Vanguard, brace yourself, I’m running right behind you.
Here are the benchmarks:

  • FTSE UK All Share Index: 0%
  • FTSE 100: -14%
  • FTSE Mid 250: 2%
  • Vanguard Total World Stock ETF: 33%

Biggest Gainers

New year, let’s try something new. The biggest gainers and losers are now no longer ranked by the % gain/loss of the position in itself, but how big the gain/loss is as a % of the overall portfolio. Meaning we’re looking at larger positions now and no longer the small positions which sometimes have huge % gain/loss swings. I do note the % gain/loss of the position in itself in brackets though.
Please do let me know in the comments if you find that more or less useful than the previous method.

Cineworld Group PLC, +0.93% (Position: +22%)
With the pandemic slowly beginning to come to a close, cinema chains like Cineworld have high hopes of everything getting back to normal. Currently, very much undervalued with a book-to-market ratio of only 0.4 and a PE ratio of merely 4.3, there’s only one obvious choice for the share price to go and that is up. I’m looking to add further to my position on the next dip.

  • Current Price: 74p
  • Target Price: 180p
  • Plan to add to position: 51p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 4.31
  • ROA: 1.4%
  • Dividend Yield: 8.7%
  • Investment Type: VALUE

Zoo Digital Group PLC ORD 1P, +0.90% (Position: +56%)
Zoo Digital Group is a localisation services provider, working with services like Netflix to provide tools and solutions for subtitles and more. The share price has seen a strong rise in January, despite its already sky-high valuation compared to its fundamentals. The PE ratio is at almost 300, so I’m certainly not looking to further add to my position on this one, but would enjoy seeing a nice ride to the upside.

  • Current Price: 95p
  • Target Price: 240p
  • Plan to add to position: N/A
  • Book to Market Ratio: 19
  • P/E Ratio: 298
  • ROA: 1.5%
  • Dividend Yield: N/A
  • Investment Type: GROWTH

Scottish Mortgage Investment Trust PLC ORD 5P, +0.43% (Position: +4%)
Scottish Mortage Investment Trust is my largest position and has been so for quite a while. Consequently, small changes in the fund’s price lead to large changes in my portfolio value. It certainly has seen a strong ride to the upside during the past year and seems to continue to do so at the beginning of 2021. It is narrowing in on my target price of 1500p but hasn’t so far managed to break above it. Let’s see if we get the final push in February, I would be more than happy to finally take my profits on this one.

  • Current Price: 1240p
  • Target Price: 1500p
  • 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

Biggest Losers

easyJet PLC, -0.47% (Position: -12%)
On the loser side, we have some airlines coming up once again, which are still fighting heavily with the pandemic. Easyjet was amongst the ones hit hardest last month, with a 12% decline in its value and my leading loser in my portfolio. I’m currently not looking to add to this position as the business is unprofitable for the moment. Once things turn around again, I may reconsider.

  • Current Price: 745p
  • Target Price: 1100p
  • Plan to add to position: N/A
  • Book to Market Ratio: 2.0
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: 5.4%
  • Investment Type: VALUE

International Consolidated Airlines Group SA (LSE), -0.36% (Position: -10%)
IAG was also tumbling 10% in January, however, the business seems in much better shape compared to easyJet. The book-to-market ratio is lower at 1.2, the PE ratio is very low at 1.5, and the ROA is at a solid 4.8%. From that perspective, I would be very much inclined to add to my position on the next dip.

  • Current Price: 147p
  • Target Price: 350p
  • Plan to add to position: 120p
  • Book to Market Ratio: 1.2
  • P/E Ratio: 1.5
  • ROA: 4.8%
  • Dividend Yield: 7.9%
  • Investment Type: VALUE

Lloyds Banking Group PLC, -0.24% (Position: -10%)
Lloyds, one of the big UK banks experienced another dip in January. The fundamentals are already quite low with a book-to-market ratio of 0.5 and the PE ratio sitting at 10. The only KPI with low performance is ROA with just 0.4%. Still, I would like to add to my position on the next dip down to 25p.

  • Current Price: 33p
  • Target Price: 52p
  • Plan to add to position: 25p
  • Book to Market Ratio: 0.5
  • P/E Ratio: 10
  • ROA: 0.4%
  • Dividend Yield: 3.3%
  • Investment Type: VALUE

Holdings

Top Holdings

Below the Top 10 holdings as of January 2021.

Cash is still my number one position and I’m waiting for the next market downturn to get it back into the market. This time round I will be better prepared than in early 2020, where the market tumbled by 30% and I was out of cash to invest.

Other than that, I have sold one of my top 10 positions in January, which is Frontier Developments PLC. Also easyJet was falling out of the top 10.
That leaves space for 2 newcomers, which there are Just Group PLC and National Express Group PLC.

NrHolding% of Portfolio
1Cash16%
2Scottish Mortgage Investment Trust PLC9%
3Kier Group PLC6%
4Royal Dutch Shell PLC5%
5Saga PLC5%
6Cineworld Group PLC4%
7Evraz PLC4%
8Iqe PLC4%
9Just Group PLC3%
10National Express Group PLC3%
Portfolio Exposure - Dan Schenk Life Investment Trust - Investment Portfolio Overview January 2020

New Positions

2 new positions in the new year. Let’s break them down.

Avation PLC @105p

The first new position in 2021 was in Avation PLC, an aircraft leasing company. This is a classic value investment buying it at a book to market ratio of 0.4 and a PE ratio of 9, it should have some solid upside potential with limited downside. The ROA isn’t the highest with only 0.7%, but that’s manageable.
I’m planning to further add to my position if it dips below 91p and have set a target price of 270p.

  • Price entered: 105p
  • Target Price: 270p
  • Plan to add to position: 91p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 9
  • ROA: 0.7%
  • Dividend Yield: 1.6%
  • Investment Type: VALUE

Georgia Capital PLC @500p

My second investment of 2021 was Georgia Capital, an investment firm focussed on developing businesses in Georgia. It has absolutely wonderful fundamentals with a book-to-market ratio of 0.5, a pe ratio of 1.2 and a return on assets of 34%. Now that’s some solid Value investment right there. I’m looking to add to my position and have set my target price at 1000p.

  • Price entered: 500p
  • Target Price: 1000p
  • Plan to add to position: 410p
  • Book to Market Ratio: 0.5
  • P/E Ratio: 1.2
  • ROA: 34.3%
  • Dividend Yield: N/A
  • Investment Type: VALUE

Closed Positions

I was also busy getting out of some positions in January, in total 3 of them. Here they are.

Frontier Developments PLC @3150p

Frontier Developments is a game developer and enjoyed a nice ride to the upside over the past 2 years. I certainly enjoyed the ride with it and was able to capture a juicy 177% gain. Initially entered my position at 1240p in 2018, then added at 1000p in 2019. Finally sold last month at 3150p. Couldn’t ask for more.

  • Price entered: 1240p (09/2018), 1000p (05/2019)
  • Price closed: 3150p
  • Profit % (incl. Dividends): 177%
Frontier Developments PLC

Griffin Mining Ltd @120p

The miner Griffin Mining wasn’t my best investment of all times, but I also don’t say no to a 37% gain over a little over 1 year.
Originally bought in at 83.9p in 2019 and now sold at 120p in January 2021.

  • Price entered: 83.9p (07/2019)
  • Price closed: 120p
  • Profit % (incl. Dividends): +37%
Griffin Mining Ltd

Kenmare Resources PLC (LSE) @380p

Another miner, Kenmare Resources also booked a nice gain over the last couple of months and so I was finally able to exit my position last month. I entered my position at 200p in 2019 and not sold at 380p for an 83% gain.

  • Price entered: 200p (07/2019)
  • Price closed: 380p
  • Profit % (incl. Dividends): +83%
Kenmare Resources PLC

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