2: Special Performers
Of course one of the great aspects of technology investing is that some truly spectacular returns can be made from time to time. Occasionally a multi-bagger will be massively successful for subscribers, particularly if we can be a patient holder over time.
One recent example is Instem, which received a bid in autumn 2023 at 833p per share. We originally made Instem a new buy in the September 2013 newsletter at 92.5p, making the gain just over 800% at the takeover price.
Now we’ve picked this extraordinary performer to demonstrate the unique potential of technology shares, but this gain is not intended to be representative. Of course many other recommendations have not performed so well, and some have fallen in value.
3: The New Year Tips
Every January we make our special selections for the year, reviewing them in the December newsletter. We can’t win every year, but over the years we have a very strong track record from our annual tips.
3: The North American Tips
Whilst the newsletter is generally devoted to smaller UK shares, we also provide some coverage of the larger North American market, as there are so many great technology opportunities there. In 2022 our North American tips did struggle to make progress and posted an average loss of 4.7% for the year to December 2022. That compared to a loss of 29.6% for the benchmark Nasdaq Composite index over the same period. In relative terms, it was a reasonable performance from the tips given the depressed state of the market for tech.
We think that’s a more comprehensive track record than many newsletters would provide, but we fully recognise that the proof of the pudding is in the eating, and that the newsletter must deliver profitable advice for subscribers to justify our annual fee. We hope that this data will give you sufficient confidence to give the newsletter a try.
OUR PERFORMANCE RECORD
Please bear in mind that historic performance is not necessarily a guide to the future. Nevertheless, we are proud of the newsletter’s strong performance record, which has helped a large number of investors to achieve strong returns from their technology stock portfolios.
The performance record has four distinct elements.
1: The Techinvest Trader Portfolio
Now in its fifth incarnation, the Trader Portfolio is an unaudited paper fund that is run to illustrate the dynamics of managing an active technology sector portfolio. No new share goes into the portfolio until after it has been rated as a ‘New Buy’ in an issue of Techinvest. After that, the fund can act just like any subscriber, using its judgement to buy, hold or sell in accordance with subsequent price movements and news flow within the sector.
All transactions take full account of prevailing bid-offer spreads. Commission is charged at a flat rate of £9.95 on deals of any size, to reflect current online dealing rates. No credit is taken for dividends paid by companies nor for interest on cash balances. Current holdings are valued using mid-market prices.
Let’s start with a long-term perspective and the performance of the first four Trader Portfolios (1985-1993; 1993-1996; 1996-2000; and 2000-2020):
Warning: the price and value of all shares may go down as well as up, and you may not get back the full amount invested. You should not buy equity securities with money you cannot afford to lose. Technology companies may exhibit greater than average volatility, meaning your investment may be subject to sudden and large falls in value and you may get back nothing at all. Changes in rates of exchange may have an adverse effect on the value or price of the investment in sterling terms. As with other investments, transactions in technology securities may also have tax consequences and on these you should consult your tax adviser. We have taken all reasonable care to ensure that all statements of fact and opinion contained in this publication are fair and accurate in all material respects. Investors should seek appropriate professional advice if any points are unclear. This newsletter is intended to give general advice only, and the investments mentioned are not necessarily suitable for any individual. It is possible that the officers of the McHattie Group and their associates may have a beneficial holding in any of the securities mentioned in this guide. Andrew McHattie is responsible for the preparation of the research recommendations contained within. Published by The McHattie Group, St Brandon's House, 29 Great George Street, Bristol, BS1 5QT. Tel: 0117 407 0225. E-Mail: email@example.com. Web Site: http://www.techinvest.co.uk. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photographic, or otherwise without the prior permission of the copyright holder. ©2023. The McHattie Group is a media firm and offers restricted advice on certain types of investment only. Authorised and regulated by the Financial Conduct Authority.