Investment Portfolio Overview – May 2020

Investment Portfolio Review May_Banner

May has seen further gains in the market after a superb month of April. I also closed one of my longest-held positions, which also has been my second largest position until last month. This means, I’m finally having some cash again, which I can pump back into the market. I’m officially back on the hunt for new value and growth investments, although I have a feeling that I’m going to focus on value investments for the time being. The whole Corona situation just created the perfect environment for that. I’m excited about the second half of the year, are you too?
I hope you enjoy reading my investment portfolio review for May 2020.
Let me know any questions in the comments section below

Table of Contents

Performance

Performance May 2020

Monthly Performance Dan Schenk Life Investment Trust - Investment Portfolio Review May 2020

Global markets continued to perform throughout May, after an incredible month of April.
My portfolio is up 4.5%, which puts me on the second spot only beaten by the enormously strong Vanguard Total World ETF.

  • FTSE UK All Share Index: 3.2%
  • FTSE 100: 3.9%
  • FTSE Mid 250: 3.7%
  • Vanguard Total World Stock ETF: 5.2%
YTD Performance Dan Schenk Life Investment Trust - Investment Portfolio Review May 2020

However, year to date, my portfolio, as well as all my benchmarks, are still in the red.
I’m down 16%, which nonetheless beats 3 out of 4 benchmarks. The Vanguard Total World Stock ETF is also here running far ahead of everyone else.

  • FTSE UK All Share Index: -19%
  • FTSE 100: -20%
  • FTSE Mid 250: -22%
  • Vanguard Total World Stock ETF: -10%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review May 2020

Looking at the cumulative performance, my portfolio is still in the red with a -14% decline since August 2017.
This puts me on par with the FTSE Mid 250 and in front of the FTSE 100. The only benchmark which is already back in the green is the Vanguard Total World Stock ETF.

  • FTSE UK All Share Index: -10%
  • FTSE 100: -18%
  • FTSE Mid 250: -14%
  • Vanguard Total World Stock ETF: 5%

Biggest Gainers

Yu Group PLC, +61%
Yu Group is in the gas, electricity and water supply business and has lost 90% of its value in 2018 due to accounting errors which were uncovered back then. Unfortunately, I invested before the big drop happened. This % gain increase now sounds big, however, only equates to a few pounds worth of value. So no big deal on this one. I’d sell this position if the fees to sell it wouldn’t be higher than its current market value – so I’ll keep this in the portfolio for now. Not looking to add to my position.

Asiamet Resources Limited, +36%
Asiamet is another experimental position in my portfolio with only low exposure. The firm is in the copper business but hasn’t turned over any revenue yet. One to stay away from for the moment. I’ll keep it in my portfolio to see what happens with it. If it turns over any revenue eventually and might even make a profit, this could become more exciting and I might consider adding to my position.

Frontier Developments PLC, +34%
Videogames maker Frontier Developments is one of my Top 10 Holdings (see full table below). Therefore this 34% increase in May has boosted my overall portfolio performance quite a bit. Videogames are seeing more demand than ever, due to the Covid-19 lockdown across the world. I think this has still further room for growth, so I’ll keep holding on to it for a little longer before I cover my profits on this one. Current target: 3000p

Biggest Losers

Stobart Group Ltd, -20%
Stobart Group, an aviation and energy group has been on the decline for the past 3 years. Another 20% drop last month adds to the fact, that the group needs to come up with new measures to tackle the market. I’m sitting patiently on the sidelines and keep watching.

Micro Focus International PLC (LSE), -17%
Micro Focus, the software group, hasn’t seen the best year so far. It now has scrapped its dividend and also stopped turning over any profit. Naturally, this causes the share price to dip. This is currently the largest loser in my portfolio based on absolute value. The book-to-market ratio of 0.3 right now is quite tempting, although I’ll have to sit this out and wait for the firm returning to profitability first before I would think about increasing my stake.

Zoo Digital Group PLC, -16%
Zoo Digital, the cloud-based services group has seen a bit of a decline in May, although on the back of some strong rally in prior months. So, this could be just some pullback before we see further gains. Also on this, I’m not looking to increase my stake at the moment, the firm is just not turning over enough profit to justify its share price. PE-ratio is at over 35, which isn’t a good sign.

Holdings

Top Holdings

Below the Top 10 holdings as of May 2020.

Cash is back! I sold the entirety of my stake in Fidelity China Special Situations PLC (see details below), which was previously my second-largest position. Now Cash is making 10% of my portfolio again and I’m ready to get it back into the market.
The rest of my top 10 holdings have been fairly stable last month.

NrHolding% of Portfolio
1Scottish Mortgage Investment Trust PLC11%
2Cash10%
3Asian Total Return Investment Company PLC8%
4Frontier Developments PLC7%
5Evraz PLC4%
6Tr European Growth Trust PLC4%
7Standard Chartered PLC (LSE)4%
8Fresnillo PLC4%
9Iqe PLC4%
10Kier Group PLC3%
Portfolio Exposure Dan Schenk Life Investment Trust  - Investment Portfolio Review May 2020

New Positions

No new positions entered last month.

Closed Positions

Fidelity China Special Situations PLC @255p

Fidelity China Special Situations PLC

This has been one of the longest and also largest holdings in my portfolio. I entered my first position back in October 2017 at 222p and added to my position in July 2018 at 240p at what I thought would’ve been just a short drop. Unfortunately, from there China began to suffocate for multiple reasons, economic growth stagnation and the US-Sino Trade War didn’t help much. Consequently, my target price for this ticker moved downwards ever since and I finally got to exit it last month at 255p. 5p over my latest target price of 250p. All in all, I made a 12% gain on this trade, including two dividend payments I received in 2018 and 2019. Not my best trade, but certainly not my worst one either. An example that shows, that sometimes just holding through times of struggle can pay off in the end.


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

2 Comments

  1. Tom
    June 2, 2020 / 12:42 pm

    An enjoyable read. Looking forward the entrepreneur update!

    • June 2, 2020 / 12:48 pm

      Thanks, mate, truly appreciate it

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