My 2019 Bargain Shares portfolio put in a vintage performance, returning 33.1 per cent in the past 12 months, or 19.7 per cent percentage points more than a FTSE All-Share index tracker fund and 26.4 percentage points more than the total return on the FTSE Aim All-Share in the same period.
Moreover, I recommended exiting three holdings: TMT Investments (TMT), a venture capital company that has a significant number of Silicon Valley investments in its portfolio; Futura Medical (FUM), a pharmaceutical company that is developing innovative products based on its transdermal Dermasys® drug delivery technology; and Mercia Asset Management (MERC), an asset management and investment company focused on UK technology businesses with high growth potential. What this means is that, including dividends banked, you will have turned 48 per cent of your invested capital into cash and still own seven holdings that are worth between them 85 per cent of your portfolio’s starting capital. This not only de-risks the portfolio, but means that the risk-adjusted return is even more impressive given the high cash holdings.
| Simon Thompson's 2019 Bargain Shares Portfolio performance | |||||
| Company name | TIDM | Opening offer price 1.02.19 | Closing bid price 29.01.20 or exit price (see notes) | Dividends | Percentage change |
| TMT Investments (note one) | TMT | 250¢ | 580¢ | 20¢ | 140.0% |
| Futura Medical (note two) | FUM | 14.85p | 34p | 0p | 129.0% |
| Inland | INL | 57.75p | 86.6p | 0.85p | 51.4% |
| Ramsdens | RFX | 165p | 240p | 4.8p | 48.4% |
| Bloomsbury Publishing | BMY | 229p | 284p | 8.03p | 27.5% |
| Augmentum Fintech | AUGM | 102.4p | 100p | 0p | -2.3% |
| Litigation Capital Management | LIT | 77.5p | 73.6p | 0.81p | -4.0% |
| Mercia Asset Management (note three) | MERC | 29.57p | 27.5p | 0p | -7.0% |
| Driver | DRV | 74p | 65p | 0.5p | -11.5% |
| Jersey Oil & Gas | JOG | 205p | 122p | 0p | -40.5% |
| Average | 33.1% | ||||
| FTSE All-Share Total Return index | 6,852 | 7,769 | 13.4% | ||
| FTSE Aim All-Share Total Return index | 1,023 | 1,092 | 6.7% | ||
| Note 1: Simon advised taking profits on TMT Investments at 580¢ a share on Monday, 9 September 2019 ('Takeovers, tender offers and taking profits', 9 Sep 2019). The selling price is the one used in the performance table. | |||||
| Note 2: Simon advised taking profits on Futura Medical at 34p a share on Monday, 14 October 2019 ('Bargain Shares: golden opportunities', 14 Oct 2019). The selling price is the one used in the performance table. | |||||
| Note 3: Simon advised selling Mercia Asset Management at 27.5p a share on Monday, 9 December 2019 ('Taking stock and profits', 9 Dec 2019). The selling price is the one used in the performance table. | |||||
| Source: London Stock Exchange opening offer prices at 8am on Friday, 1 February 2019 and closing bid prices on Wednesday, 29 January 2020, or on the date that Simon advised exiting the holding. | |||||