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Simon Thompson's Bargain Portfolio


The idea behind our annual Bargain Shares Portfolio is very simple. It’s to invest in companies where the true worth of the assets is not reflected in the share price, usually for some temporary reason, but where we can reasonably expect that it will be in due course.

Our portfolios are based on the investment ideas of Benjamin Graham (see box ‘Rules of Engagement’) and they have beaten the FTSE All-Share index in 13 out of the 16 years in which we have run them. During that time, they’ve generated an average return of 22.7 per cent in the first 12-month holding period compared with an average increase of 4 per cent for the FTSE All-Share.


Latest Updates

  1. Targeting record highs

    Targeting record highs

    By Simon Thompson | 21 November 2016

    A quartet of Simon Thompson’s small cap companies are targeting all-time share price highs

    The judge found for the plaintiffs effectively on all points which means not only is there is a case to answer, but the probability of ultimate success for Burford and its client has increased. In the event of a successful outcome, it’s worth noting the state has settled similar such cases at 50¢ on the dollar, so there is potential for a significant windfall payout for Burford's shareholders on the US$3bn action.

  2. Manufacturing currency gains

    Manufacturing currency gains

    By Simon Thompson | 05 October 2016

    A pair of manufacturing companies with significant overseas exposure are benefiting from significant currency tailwinds

    The point being that with currency tailwinds strengthening in recent weeks, and sterling hitting a 31-year low against the US dollar, the full benefit of sterling's recent devaluation further underpins profit estimates. In fact, if the cross rate remains at this level I believe there is scope for further foreign-exchange-led earnings upgrades

  3. High fives

    High fives

    By Simon Thompson | 04 October 2016

    Simon Thompson’s sees upside in no fewer than five small cap shares

    Analysts will review forecasts in the light of the interim results in November, and I believe a £1m plus profit upgrade is in order. This is simply not reflected in the current share price.

  4. Bargain shares: small cap updates

    Bargain shares: small cap updates

    By Simon Thompson | 03 October 2016

    A trio of Simon Thompson’s bargain shares have made interesting announcements, all of which support further share price gains.

    Strip out property and legacy assets from the market capitalisation, and the company’s fund management businesses are being valued on less than three times their fee income.

  5. Anomalously priced fund managers

    Anomalously priced fund managers

    By Simon Thompson | 27 September 2016

    Shares in two Aim-traded asset managers are seriously undervalued, and offer decent yield attractions too.

    I can see clear potential for Arden to upgrade its pre-tax profit estimate by almost a fifth in a few months time. For good measure there is an attractive and well covered payout for shareholders, implying a forward dividend yield of 3.6 per cent.

Our portfolios

Mr Bearbull's Global Fund Portfolio

A portfolio of instruments designed to capture the rise of emerging markets

Mr Bearbull's Income Fund Portfolio

A collection of high-yielding shares that's beaten the market since 1998

Chris Dillow's Benchmark Portfolio

Simple portfolios picked using simple rules that often beat the market

John Baron's Investment Trust Portfolios

A portfolio of investment trusts designed to generate growth and income

David Stevenson's SIPP Portfolio

Our columnist describes how he manages his pension fund and what he puts in it

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