It's been about three months since the last analysis of a Small Cap. Today, I’m closing the cycle of small-cap stock-picking analysis.
Today, we’ll take a look at how the portfolios made up of the companies featured in Small Cap Effect over the past year have performed.
The last one was Byrna — a small cap that looks like it might follow in the footsteps of Axon Enterprise, the company that has risen a “modest” 180,000% since its IPO in 1993.
Oh...!
Since I published about Byrne, it has gone up 38%. Although from the lows (a few days after the publication) to the recent highs, it rose 147%.
Good.
PORTFOLIOS
The first portfolio, with companies purchased in the order they appeared in this newsletter, is up 21% versus the S&P 500’s 6% over the past six months.
Since the start, the figure is much better: up 46% versus the S&P 500’s 17%.
The second portfolio, using exactly the same investment methodology as the first, is doing quite well over 6 months — it's up 23% compared to the S&P 500's 6%.
And since the start, which hasn’t even been a year, it’s up 16% versus the S&P 500’s 11%.
I have the feeling that the second portfolio will continue widening the gap versus the S&P 500. Stocks drop fast, but they rise slowly.
Time is key. So is patience.
COMPONENTS
On the other hand, the composition of the portfolios and the exact returns of the companies are as follows:
In the upcoming articles, I’ll launch a couple of quantitative systems and track them closely.
Which one will come out on top?
Will the quantitative systems outperform small-cap stock picking?
Will we beat the S&P 500 again, or will it get its revenge with a stronger return?
Don’t miss the next edition of Small Cap Effect!
Big hug, guys.