Each year we track the performance of the 10 worst performing stocks of the previous financial year. Buying this group of underperformers or out of favour stocks means you are taking a contrarian point of view.
The 2020 Financial Year Contrarian Portfolio lost 12.78% vs a fall of 10.9% on the ASX 200. So it was pretty much inline with the market.. It was disappointing not to see another bumper year like the 2019 financial year when it returned 25% compared to the ASX 200 which only rose 6.8%.
However this year has been crazy…
2020 Financial year – Contrarian Portfolio
#Note that Bellamy’s was taken over during the year and was closed out early.
The new 2021 Financial year – Contrarian Portfolio
As you can see above the stocks in this year’s contrarian portfolio had a brutal year. It is interesting to point out that SXL, OML, FLT, GEM, WEB and OSH all recently raised capital to fix their balance sheets.
I will be updating the performance of the portfolio at the end of each quarter and the stocks will be held for the entire 12 months.
Here’s to a better year and hopefully some big returns.