How Does a Contrarian Portfolio Perform in this Climate?

Here’s a breakdown on how the Contrarian Approach Portfolio is performing.

Since beginning this Shadow Stock Portfolio on June 1, 2016, it owns six stocks and is 60% invested.

The total return when including current holdings and cash is 12.58%.

Contrarian Approach Portfolio

Here’s what the portfolio currently owns:

Stock 1:

• Company Name: Benchmark Electronics, Inc.
• Ticker Symbol: BHE
• Shares Purchased: 47
• Buy Price: $21.03
• Buy Date: 6/1/16 (closing price)
• Current Price: $30.50 (closing price on 12/30/16)
• Reinvested Dividends: None
• Total Investment: $988.41
• Current Balance: $1,433.50
• Return: 45.03%

Stock 2:

• Company Name: Western Digital, Corp.
• Ticker Symbol: WDC
• Shares Purchased: 20
• Buy Price: $47.66
• Buy Date: 7/7/16 (closing price)
• Current Price: $67.95 (closing price on 12/30/16)
• Reinvested Dividends: 0.18 shares
• Total Investment: $953.20
• Current Balance: $1,371.23
• Return: 43.86%

Stock 3:

• Company Name: Dilliards, Inc.
• Ticker Symbol: DDS
• Shares Purchased: 14
• Buy Price: $68.67
• Buy Date: 9/16/16 (closing price)
• Current Price: $62.69 (closing price on 12/30/16)
• Reinvested Dividends: 0.02 shares
• Total Investment: $961.38
• Current Balance: $878.91
• Return: -8.58%

Stock 4:

• Company Name: Genesco, Inc.
• Ticker Symbol: GCO
• Shares Purchased: 19
• Buy Price: $50.36
• Buy Date: 9/16/16 (closing price)
• Current Price: $62.10 (closing price on 12/30/16)
• Reinvested Dividends: None
• Total Investment: $956.84
• Current Balance: $1,179.90
• Return: 23.31%

Stock 5:

• Company Name: Universal Corp.
• Ticker Symbol: UVV
• Shares Purchased: 17
• Buy Price: $50.36
• Buy Date: 9/16/16 (closing price)
• Current Price: $63.75 (closing price on 12/30/16)
• Reinvested Dividends: None
• Total Investment: $946.05
• Current Balance: $1,083.75
• Return: 14.56%

Portfolio:

• Starting Balance: $10,000.00
• Invested Balance: $7,028.19
• Cash Available to Invest: $4,229.32
• Current Balance: $11,257.51
• Total Return: 12.58%

Sign in to your premium account to review the strict “buy” and “sell” rules followed by the Value Composite portfolio.

As discussed here, The Stock Market Blueprint is building and tracking a Shadow Stock Portfolio for each Premium stock screen featured on the site.

The purpose of the shadow stock portfolios is to show investors how systematic investment strategies can be implemented using the stock screens featured on The Stock Market Blueprint.

Additionally, the Shadow Stock Portfolios are establishing track records for the strategies being implemented. These records provide actual investment results in real-time.

Contrarian Approach is a simple screen which finds solid companies trading at low price ratios.

The screen is inspired by David Dreman’s contrarian investment philosophy. Dreman believes strongly in market overreactions and the principle of mean reversion.

His research and professional experience shows that a diversified list of financially strong, adequately sized companies, currently out-of-favor with the market, “provide superior returns over time.”

See a more detailed explanation of the screen here.

By investing blindly based on what stock screens tell you to, rule-based investment strategies eliminate human emotions from the decision-making process.

Follow along every week to see the performance of a different featured Shadow Stock Portfolio. Each strategy is highlighted every eight weeks.

You can build your own portfolio using the stock screens on TheStockMarketBlueprint.com.

Check out our Shadow Stock Portfolios to see real-world examples of implementing systematic investment strategies.