- The screen's 10 picks have underperformed
- Why? It's hard for 'growth stocks' to meet the lofty expectations placed upon them by the market
Once an excellent source of consistent outperforming ideas and alpha, our Genuine Growth screen has fallen back sharply after consecutive dismal outings. The last time we dropped in on its performance it was heading for a severe 29 per cent total loss on 2021’s selections. Given the backdrop of the past 12 months – which is to say a slightly less precipitous sell-off in UK equities – 2022’s cohort was arguably even worse.
The 10 shares that made the cut a year ago collectively returned a 24 per cent total loss in the year to 14 November, a considerable underperformance of both the growth-oriented Aim 100 index and the core benchmark for UK equities, the FTSE All-Share. This dragged the screen’s all-time total return down to 88 per cent, compared with 100 per cent from the FTSE All-Share and 28 per cent from the FTSE Aim 100.