Investment Portfolio Review – 2020

Investment Portfolio Review 2020_Banner

2020, what a year it has been.
Initially, everyone thought this is it. The bull market is over and we’re at the beginning of a brutal bear market for many months and years to come.
Funnily enough, the bear market only lasted a couple of weeks and before we knew it, we were already coming out of it. At the end of the year, the FTSE indices are still in the red, but overall the market has seen much enthusiasm. Especially the NASDAQ recovered with immense speed and confidence and already made new all-time highs in June, just 3 months after the devastating lows in March.
My portfolio has been doing great this year, too. I’ve outperformed all my benchmarks and finishing on a solid 25% gain.
I hope you enjoy reading my investment portfolio review for 2020.
Let me know any questions in the comments section below.

Table of Contents

Performance

Performance 2020

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

2020 was an absolute blast. What initially started like seemingly the worst year ever, made a 180° turnaround from April and we experienced another strong bullmarket.
My portfolio is up 25% on the year, my biggest gain so far, almost doubling the 13% gain I achieved in 2019.
While Warren Buffett’s Berkshire Hathaway only managed to about break-even in 2020, my portfolio is has been struggling as well until October, but the last two months really made all the difference. In November, finally some of my value investments paid off with huge gains, which catapulted me to the first position amongst my benchmarks. In December, I was able to further extend the Gap to my benchmarks with another 6.7% gain, after the 25.6% gain in November.
Here are the benchmarks:

  • FTSE UK All Share Index: -10%
  • FTSE 100: -14%
  • FTSE Mid 250: -6%
  • Vanguard Total World Stock ETF: 14%
Cumulative Performance Dan Schenk Life Investment Trust - Investment Portfolio Review 2020

Looking at the cumulative performance since the injection of the DSL Investment Trust in 2017, I’m far ahead of the UK FTSE benchmarks, however still second to the surprisingly well performing Vanguard Total World Stock ETF.
On the plus side, the gap now looks as tight as it hasn’t been since mid 2019, so I’m confident that I can outperform also this benchmark in 2021 and claim the number one spot on the list.
My portfolio is up 28% over this 3 year period, an 7.9% annual gain.
Here are the benchmarks:

  • FTSE UK All Share Index: 1%
  • FTSE 100: -13%
  • FTSE Mid 250: 4%
  • Vanguard Total World Stock ETF: 33%

Biggest Gainers of 2020

Frontier Developments PLC, +152%
Frontier Developments, a video games developer, had an insanely positive year. With the help of the lockdowns across the country, we have seen an accelerated move towards digital sales of games, which benefited the firm massively.
Now, the share price is zooming in closely to my target price, meaning I’m getting ready to sell and reap my rewards. The share price does look a bit overpriced right now, so I’m hoping we’re hitting my target price soon so that I can get out.

  • Current Price: 3080p
  • Target Price: 3200p
  • Plan to add to position: N/A
  • Book to Market Ratio: 12.8
  • P/E Ratio: 74
  • ROA: 10.7%
  • Dividend Yield: N/A
  • Investment Type: Growth

Asiamet Resources Limited, +136%
Asiamet Resources, a precious metal exploration and development firm also had a solid run in 2020. It might have to do with copper prices and other precious metals have seen a strong increase in value in 2020. Unfortunately, the firm doesn’t actually make any revenue just yet, so I won’t add to my position on this one as it’s too speculative at this point. Instead, I’ll dump my shares if it hits my target price. If it doesn’t I’ll just keep holding them to wait and watch any future developments.

  • Current Price: 5.5p
  • Target Price: 8p
  • Plan to add to position: N/A
  • Book to Market Ratio: N/A
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: N/A
  • Investment Type: Value

Cineworld Group PLC, +132%
Cineworld obviously didn’t have a good year with all this pandemic going on. Their cinemas were closed for most of the year. However, my position had a tremendously solid performance. That’s what happens when you buy pretty much the low of the year. Fundamentally, we’re still looking at a relatively good buy opportunity, so I would add further to my position if we’re seeing another price dump down to 40p.

  • Current Price: 65p
  • Target Price: 280p
  • Plan to add to position: 40p
  • Book to Market Ratio: 0.4
  • P/E Ratio: 3.8
  • ROA: 1.4%
  • Dividend Yield: 9.3%
  • Investment Type: Value

Biggest Losers of 2020

NMC Health PLC, -99%
This one was the biggest failure of my portfolio so far and the only one of my positions that actually defaulted. NMC Health is a health care provider in the Middle East, that first became the target of a popular short seller, driving the share price down. A few weeks later, it filed for bankruptcy and is currently under administration.
Luckily, my portfolio is well diversified enough, so that defaulting on a single position, doesn’t hurt much to the overall performance. That is why diversification is the key to longterm success in the markets. With no doubt, will I experience another default sometimes in the years to come, so no heart-feelings and moving on.

  • Current Price: 0p
  • Target Price: 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: N/A

Stobart Group Ltd, -77%
Stobart Group is an aviation and energy infrastructure group that had a terrible 3 years. 2020 was just the tip of the iceberg with another crushing 77% decline in its share price. Possibly, we’re now at a point where fundamentals catch-up with the share price and consequently see a turnaround. I’m not adding to my position just yet but could consider it if we see some profits rolling in again.

  • Current Price: 26p
  • Target Price: 170p
  • Plan to add to position: N/A
  • Book to Market Ratio: 1.3
  • P/E Ratio: N/A
  • ROA: N/A
  • Dividend Yield: 40.9%
  • Investment Type: Value

International Consolidated Airlines Group SA (LSE), -74%
Buffett sold all his stake in Airlines at the beginning of the pandemic and it probably was a good call as we haven’t seen any recovery from April onwards in this sector just yet.
IAG, however, does have some solid fundamentals underlying the share price, so I would be comfortable to add to my position on the next pullback.

  • Current Price: 160p
  • 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

Holdings

Top Holdings

Below the Top 10 holdings as of December 2020.

A bit of a reshuffle going on in the last month of the year.
Cash is back at position 1, which means I’m going with strong purchasing power into 2021. Something not to underestimate. Liquidity has been my weak spot in the early days of 2020 and if I had more cash aside to invest in the months of March and April, I’d likely have seen stronger overall gains on the year. Hence, I’m quite happy to have 13% of my portfolio in cash right now, which leaves me enough room for some emergency purchases on the next major market pullback.

Other than that, Evraz is back in the top 10, having fallen out earlier in the year.
And I’ve sold my entire stake in Tr European Growth Trust, which has been one of my top 10 holdings before.

NrHolding% of Portfolio
1Cash13%
2Scottish Mortgage Investment Trust PLC9%
3Kier Group PLC6%
4Frontier Developments PLC6%
5Royal Dutch Shell PLC5%
6Saga PLC5%
7Evraz PLC4%
8Cineworld Group PLC4%
9Iqe PLC4%
10easyJet PLC3%
Portfolio Exposure - Dan Schenk Life Investment Trust - Investment Portfolio Review 2020

New Positions entered in 2020

2020 was a good year to be active in the stock market. After an initial dry period, where I was lacking the liquidity to purchase any stocks, I came back strong, especially in Q3 and Q4. In total I entered 18 new positions (or adding to my existing positions) in 2020 and here’s the full list:

  • Fresnillo PLC
  • Cineworld Group PLC
  • Saga PLC
  • International Consolidated Airlines Group SA (LSE)
  • Just Group PLC
  • Crest Nicholson Holdings PLC
  • easyJet PLC
  • Kier Group PLC
  • National Express Group PLC
  • Iqe PLC ORD 1P
  • Lloyds Banking Group PLC
  • Royal Dutch Shell PLC – B (LSE)
  • Bank of Georgia Group PLC
  • BT Group PLC
  • BP PLC
  • McColl’s Retail Group Ltd
  • Stobart Group Ltd
  • Sopheon PLC

All of them, except 2 are finishing the year with positive returns. The only 2 negative ones are Stobart Group Ltd and Sopheon PLC, with a -2% and -3% loss respectively.

Closed Positions in 2020

Also on the selling side, I was pretty active.
In total I sold the following 9 positions:

  • Fresnillo PLC
  • Game Workshop Group PLC
  • Tr European Growth Trust PLC ORD 12.5P
  • Polar Capital Holdings PLC
  • Ishares Ii PLC ISHRS GLBL TIMBER & FOREST ETF USD DIST
  • Asian Total Return Investment Company PLC
  • Persimmon PLC
  • Baillie Gifford Japan Trust PLC ORD 5P
  • Fidelity China Special Situations 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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