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Mindless Momentum's "middlers" strategy looking for much-needed boost from Kurdistan

The virtual portfolio based on momentum investment is not working out too well for middle-ranking companies. The portfolio has a heavy bias towards energy companies, and this month's addition of Gulf Keystone sees the portfolio doubling down on producers from Kurdistan.

Kurdistan
Genel and Gulf Keystone have both seen improvements in the promptness of payments in Kurdistan

Last week we refreshed the big caps in our “Mindless Momentum” virtual portfolio; this week it is the turn of the middle rankers.

Unlike the blue-chip version of the momentum investment strategy, the version focused on companies with a market capitalisation of between £100mln and £1bn has not been going so well – but at least it has been trouncing the small-caps version (of which more anon)

READ Mindless Momentum strategy working a treat for blue-chips

When last we checked in on the “middlers” version of the “Mindless Momentum” stock filter in mid-May, the portfolio was worth £9,146, down from an initial stake of £10,000.

After dumping seven stocks and replacing them with seven new ones this week (and incurring £210 of assumed dealing costs in the process), the portfolio’s value has fallen to £8,781.

The seven stocks to head for the exit (and the gain/loss made on each one) are listed below:

Frontier Developments (-£236); Future (£14); Games Workshop (£170); Griffin Mining (£69); Loop-Up (£127); Oxford Biomedica (£355); Yu (-£311).

Games Workshop was only ejected because it is now a “bigler” rather than a “middler” and happily we sold it before it took a bath yesterday following its interim results.

The seven new stocks joining the crew are: Eland Oil & Gas, Gulf Keystone, Impax Asset Management, Seeing Machines, Serica Energy, Versarian and Zoo Digital.

Zoo Digital makes its way up from the “Mindless Momentum” tiddlers, where it did very well but it has got off to a poor start to its stint in the middlers.

Gulf Keystone’s inclusion in the portfolio means we now have two oil producers – the other is Genel – focused on the Kurdistan region of Iraq.

Here’s the current state of play.

Company

Shares owned

Cost of shares

Cost per share

Current bid price

Current value

Change

% change

Bushveld Minerals

3,500

£785

22.43p

26.25p

£919

£134

17%

Eland Oil & Gas

685

£936

136.69P

134P

£918

-£18

-2.0%

Genel Energy

297

£784

264.05p

266.5p

£792

£7

0.9%

Gulf Keystone

347

£934

269.32p

258.5p

£897

-£38

-4.0%

Impax Asset Management

357

£936

262.2p

275.5p

£984

£47

5.1%

K3 Capital Group

228

£786

344.58p

315p

£718

-£67

-8.6%

Seeing Machines

8,300

£936

11.28p

11.18p

£928

-£9

-0.9%

Serica

1,347

£931

69.11p

68.6p

£924

-£7

-0.7%

Versarien

735

£934

127.04p

122.5p

£900

-£33

-3.6%

Zoo Digital

530

£937

176.83p

148p

£784

-£152

-16%


 

  • Cash: £9
  • Value of portfolio (including cash): £8,772
  • Dividends received: £9
  • Profit/loss: -£1,228

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