Contrarian Portfolio Update

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

It is that time of year
#Note that Bellamy’s was taken over during the year and was closed out early.

The new 2021 Financial year – Contrarian Portfolio

It is that time of year FY21

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.

General Advice Warning
The information provided in this post is general information only. Unless otherwise stated the information is not designed for the purpose of providing personal, financial or investment advice. Any examples are presented for illustration purposes and past performance is not a reliable indicator of future performance. The information provided does not take into account your particular investment objectives, financial situation or investment needs.

Without limiting the generality of the above paragraph no person, persons or organisation should invest monies or take action on the reliance of the material contained in this post, but instead should satisfy themselves independently (whether by expert advice or otherwise) of the appropriateness of any such action. Unless otherwise stated the information presented is not a recommendation to invest in any investments, securities or financial products.

This service, like all other financial services, is subject to market forces and unpredictable events that may adversely affect its future performance. Whilst all care has been taken in compiling information in this post, and is provided in good faith, it is not to be relied upon as a substitute for professional advice. The views expressed are commentary only and the writer accepts no responsibility for the accuracy, completeness or timeliness of the information.

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