Questor Portfolio Tips Deliver for Investors in 2014

Strategic Insights -

The Questor portfolio of tips, which was established by following a clear value-investing formula, delivered exceptional returns for investors in 2014. The portfolio gained more than 12% in value, surpassing the 6% loss in 2013 and outperforming the 2% fall in the wider FTSE 100. The standout winners included Hyder Consulting, which ended the year up 19.4% after being acquired by rival Dutch firm Arcadis, and Bellway, which saw its shares soar 26.2% as the UK housing market continued to recover.

Key Takeaways:

  • The Questor portfolio gained more than 12% in value in 2014, reversing the 6% loss in 2013 and outperforming the 2% fall in the wider FTSE 100.
  • The portfolio's performance was driven by a clear value-investing formula, which avoided the worst performers in the Aim market and stuck to a safe, blue-chip approach.
  • Notable winners included Hyder Consulting, which was acquired by Arcadis for a 750p bid, resulting in a 19.4% gain, and Bellway, whose shares surged 26.2% as the UK housing market recovered.
  • Royal Dutch Shell's "B" shares were chosen for their capital preservation and dividend income, finishing the year with a gain of almost 5.4%.
  • GlaxoSmithKline's shares suffered from a bribery trial and profit warning, resulting in a 14% loss, but the company's forecast dividend yield of 5.8% and potential from new medicines make it an attractive hold.
  • Volkswagen's shares were impacted by an economic slowdown in Germany and France, as well as the crisis in Russia, resulting in a 5.6% loss.
  • CSR Group's shares surged 42% after being acquired by Qualcomm for a 900p offer, driven by the potential of its disruptive technology in wearable devices.

Statistics:

  • The Questor portfolio gained 12.1% in value in 2014.
  • The wider FTSE 100 fell 2.3% in 2014.
  • The Aim market fell 18.3% in 2014.
  • Royal Dutch Shell's "B" shares finished the year at PS22.80 ( nominal price) and PS23.69 (after dividend).
  • Bellway's pre-tax profits more than doubled from PS105.3m in 2012 to PS245.9m in 2014.
  • Bellway's shares ended the year 26.2% higher, with a dividend payment of PS1.57.
  • GlaxoSmithKline's shares fell 14% in 2014.
  • CSR Group's shares surged 42% in 2014.
  • Volkswagen's shares fell 5.6% in 2014.

Sources:

  • John Ficenec, The Questor portfolio of tips has delivered for investors. (The Times)
  • Financial Times
  • Bloomberg
  • The Telegraph