Investment Portfolio Overview – October 2020

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October on paper has been the worst month for my portfolio since the start of the rally in April. Despite it all started really promising earlier in the month and for a short moment, I was in the green on the cumulative all-time performance. What followed were a few tough weeks with a few drawdowns. I used those drawdowns to go on a massive spending spree once again to get my overwhelming cash position of over 25% of my overall portfolio back into the market. At least the spending spree was a success, I entered a total of 8 new positions. More than I have done anytime before in a single month. On top, I sold one of my oldest holding for a juicy triple-digit percentage gain.
I hope you enjoy reading my investment portfolio review for October 2020.
Let me know any questions in the comments section below.

Table of Contents

Performance

Performance October 2020

1-month Performance Dan Schenk Life Investment Trust - Investment Portfolio Review October 2020

October looked promising at the outset but then had a difficult time holding its level. At the end of the month, my portfolio finished in the red with -3.8%. However, the benchmarks weren’t any better off.
Here are the benchmarks:

  • FTSE UK All Share Index: -3.9%
  • FTSE 100: -4.6%
  • FTSE Mid 250: -0.6%
  • Vanguard Total World Stock ETF: -2.0%

On the year-to-date performance, the FTSE indices continued to trend lower in the -20% area. There’s now obviously no hope left for those to get back up to break-even in the remaining two months of the year. My Portfolio finishes -7%, which also makes it a tight race to break-even on the year with only two months left. Let’s see what November and December will bring.
Here are the benchmarks: 

  • FTSE UK All Share Index: -23%
  • FTSE 100: -26%
  • FTSE Mid 250: -21%
  • Vanguard Total World Stock ETF: -2%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review October 2020

Cumulative, since the beginning of the DSL Investment Trust, I’m now back down at -4%. Only the Vanguard Total World Stock ETF shows some semi-decent performance over these 3 years, however, 13% over 3 years also isn’t an amazing result. I’m still in the race for breaking even by the end of the year if November and December don’t turn out to be a total disaster.
Here are the benchmarks:

  • FTSE UK All Share Index: -14%
  • FTSE 100: -25%
  • FTSE Mid 250: -13%
  • Vanguard Total World Stock ETF: 13%

Biggest Gainers

Asiamet Resources Limited, +67%
Asiamet, a miner of precious metals, seemed to have a good month. Not that it would be because of the release of positive news or its underlying fundamentals. Guess investors were just ploughing into this one in October.
My position size on this one is tiny and I’ll keep it like that. Too risky one for me to add to my position.

  • Current Price: 3.7p
  • Target Price: 8.0p
  • Plan to add to position: N/A
  • Book to Market Ratio: N/A
  • P/E Ratio: N/A
  • Dividend Yield: N/A
  • Investment Type: Value

Arcontech Group PLC, +20%
Arcontech, a company in the financial sector, signed some strong deals in October, which made the share price jump.
However, at this level with the underlying fundamentals, I’m not confident adding to my position, so I’m just going to watch it rise further until my target price is hit.

  • Current Price: 179p
  • Target Price: 330p
  • Plan to add to position: N/A
  • Book to Market Ratio: 4.3
  • P/E Ratio: 21.6
  • Dividend Yield: 1.4%
  • Investment Type: Growth

Thor Mining PLC, +16%
Thor Mining, the miner, had quite a comeback the past couple of months, very much in my favour. Still 267% away from my target price of 4p. If it hits that, it would be a big winner, however, with the underlying fundamentals, it might as well go down the toilet. Time will tell.

  • Current Price: 1.1p
  • Target Price: 4p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.4
  • P/E Ratio: N/A
  • Dividend Yield: N/A
  • Investment Type: Growth

Biggest Losers

Cineworld Group PLC, -32%
Cinemas are still having a tough time, with most of the world still applying lockdown measures. That gives Cineworld a tough time and the share price is shattered. I’m still confident in the underlying business though, so would further add to my position at 21p. At that price level, there’s a massive margin of safety, the book value of the business alone is 5x the current market cap.

  • Current Price: 27.4p
  • Target Price: 280p
  • Plan to add to position: 21p
  • Book to Market Ratio: 0.2
  • P/E Ratio: 1.7
  • Dividend Yield: 21.5%
  • Investment Type: Value

Saga PLC, -27%
Saga, the company serving 50+, had a 15:1 split in October, which had some implications on the share price. Other than that, there weren’t any specific bad news around the company, other than covid 19 travel restrictions, etc. Overall I’m looking to add to my position here if it comes back down to 110p level, which should have a wide margin of safety applied.

  • Current Price: 139p
  • Target Price: 1400p
  • Plan to add to position: 110p
  • Book to Market Ratio: 0.3
  • P/E Ratio: 1.1
  • Dividend Yield: 0.8%
  • Investment Type: Value

Yu Group PLC, -16%
Yu Group, an utility services provider, is still a far cry away from its old share price before they discovered holes in their accounting. Hence, I’m not adding to my position and just having a tiny bit of exposure left in this firm. I’ll probably sell the rest when there’s a chance to do it without incurring a loss when taking the transactional costs into account.

  • Current Price: 79.8p
  • Target Price: 1000p
  • Plan to add to position: N/A
  • Book to Market Ratio: 2.5
  • P/E Ratio: N/A
  • Dividend Yield: 1.5%
  • Investment Type: Value

Holdings

Top Holdings

Below the Top 10 holdings as of October 2020.

I was able to significantly reduce my overloaded cash holdings from last month. Which means the Scottish Mortgage Investment Trust is back at the number 1 spot for now. Looking to sell that off for a while now, but it was always shy just a few points of my target level.

Other than that a few newcomers to the Top 10, which there are: Royal Dutch Shell PLC, Saga PLC and easyJet PLC.
While being kicked out of the Top 10 were Standard Chartered PLC, National Express Group PLC and International Consolidated Airlines Group SA.

Overall, almost half of my portfolio is now made up of positions not in the top 10, which means I’m quite diversified at the moment.

NrHolding% of Portfolio
1Scottish Mortgage Investment Trust PLC10%
2Cash7%
3Frontier Developments PLC6%
4Kier Group PLC5%
5Royal Dutch Shell PLC5%
6Evraz PLC4%
7Saga PLC4%
8Iqe PLC4%
9Tr European Growth Trust PLC3%
10easyJet PLC3%
Portfolio Exposure - Dan Schenk Life Investment Trust - Investment Portfolio Review October 2020

New Positions

In October, I entered a record of 8 new positions (or position adds) as I wanted to aggressively reduce my cash holdings, which made up 25% of my portfolio at the start of the month. Well, I was certainly successful in that, below are my new positions.

BP PLC @225p

Added to my position in BP with it trading at historical lows and a decent book-to-market ratio of 0.5. Once oil prises are on the rise again, we should see a nice rebound in this one.

  • Price entered: 225p
  • Target Price: 440p
  • Plan to add to position: 190p
  • Book to Market Ratio: 0.5
  • P/E Ratio: 13.7
  • Dividend Yield: 15.5%
  • Investment Type: Value

BT Group PLC @100p

My first entry into BT Group. Trading at a promising price considering its book value and PE ratio. One which is likely to surge after the pandemic is over and also 5G really kicking in countrywide.

  • Price entered: 100p
  • Target Price: 250p
  • Plan to add to position: 91p
  • Book to Market Ratio: 0.7
  • P/E Ratio: 4.3
  • Dividend Yield: 4.7%
  • Investment Type: Value

Cineworld Group PLC @40p

My first add to Cineworld. While cinemas still being closed, share price is tumbling lower and debt is continuuing to rise. However, with a potential 5x on the share price by book value, I feel like there’s a large enough margin of safety applied to further pile into this holding and I will continue to do so.

  • Price entered: 40p
  • Target Price: 280p
  • Plan to add to position: 21p
  • Book to Market Ratio: 0.2
  • P/E Ratio: 1.7
  • Dividend Yield: 21.5%
  • Investment Type: Value

easyJet PLC @480p

My first entry into easyJet, the budget airline. Another one heavily discounted due to the covid impact, but with huge uplift potential once everything returns back to normal.

  • Price entered: 480p
  • Target Price: 1100p
  • Plan to add to position: 420p
  • Book to Market Ratio: 0.8
  • P/E Ratio: 5.9
  • Dividend Yield: 8.1%
  • Investment Type: Value

Just Group PLC @42p

My first entry into Just Group, a financial services group, currently trading at a marvellous book to market ratio of only 0.2 and a PE ratio of 2.4. I would happily add further to my position here if the price drops any further in the next couple of weeks.

  • Price entered: 42p
  • Target Price: 100p
  • Plan to add to position: 37p
  • Book to Market Ratio: 0.2
  • P/E Ratio: 2.4
  • Dividend Yield: N/A
  • Investment Type: Value

McColl’s Retail Group Ltd @21p

Another initial position made in McColl’s a retailer heavily battered by the covid lockdowns. Now trading well below book value, so it seems it has enough uplift potential once the pandemic is over.

  • Price entered: 21p
  • Target Price: 160p
  • Plan to add to position: 16p
  • Book to Market Ratio: 0.6
  • P/E Ratio: 3.8
  • Dividend Yield: 6.3%
  • Investment Type: Value

Royal Dutch Shell PLC – B (LSE) @900p

My second add to Royal Dutch Shell now brings this into my Top 10 Holdings. With the recent tumble in oil prices and less demand due to travel and industry restrictions it is now trading at about half its book value and a PE ratio of only 6.5. On top comes a huge dividend yield of almost 15%. At the current price levels I’m happy to top up my holdings here until it reaches my maximum threshold for a single position.

  • Price entered: 900p
  • Target Price: 2200p
  • Plan to add to position: 810p
  • Book to Market Ratio: 0.5
  • P/E Ratio: 6.5
  • Dividend Yield: 14.9%
  • Investment Type: Value

Saga PLC @10.5p

My first add to Saga PLC, however after adding to my position there was a share consolidation carried out with a 1:15 lever. So the 10.5p level I added is now more like 157.5p. Regardless of that, at the current share price I’m looking to add further as it has an immense upside potential with a large margin of safety.

  • Price entered: 10.5p
  • Target Price: 1400p
  • Plan to add to position: 110p
  • Book to Market Ratio: 0.3
  • P/E Ratio: 1.1
  • Dividend Yield: 0.9%
  • Investment Type: Value

Closed Positions

I also managed to close one of my positions in October, which was a long-time holding of mine and a very decent winner.

Games Workshop Group PLC @11000p

  • Price entered: 3300p (01/2019)
  • Price closed: 11000p
  • Profit % (incl. Dividends): 218.78%

I invested into Games Workshop Group initially in January 2019 and since we’ve seen a massive ride to the upside. Again, I missed the opportunity to add during the first major draw-down in early 2020, but I didn’t have any free cash to invest back then.
Anyway, the share price finally hit my target of 11000p last month and I closed my position for a massive 218% gain over less than 2 years.

Games Workshop PLC - Dan Schenk Life Investment Trust - Investment Portfolio Review October 2020

I hope you find my investment portfolio recap for October 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?

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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