Five consistent funds that have doubled in three years
Saltydog names the funds that have dependably delivered over the past three years.
16th August 2021 14:10
by Douglas Chadwick from ii contributor
Saltydog names the funds that have dependably delivered over the past three years.
This content is provided by Saltydog Investor. It is a third-party supplier and not part of interactive investor. It is provided for information only and does not constitute a personal recommendation.
The Saltydog system is based on a proven set of algorithms that crunches all the UK fund data and presents it in a way that is designed to help private investors such as ourselves take advantage of market trends. We have developed our own unique software and reports that analyse thousands of funds, highlighting which sectors are on the up, which are retracting, and then pinpointing the best-performing funds.
To help our members see how the data can be used, we also run a couple of demonstration portfolios, the Tugboat and the Ocean Liner.
Every Wednesday, we release our analysis for the previous week and decide what changes to make to the portfolios, which means that we can react quickly to market changes. This was particularly useful when markets suddenly fell in the first quarter of 2020, and it meant that we could quickly move into cash and then start to invest again when conditions improved. We managed to miss the worst of the stock market crash and have subsequently gone on to new record highs.
Past performance is not a guide to future performance.
We appreciate that one of the disadvantages of the way in which we manage this portfolio is that it is fairly time-consuming. We pore over all the data and review each holding every week.
There are some people who like our momentum-driven approach, but do not feel that they can allocate the time on a weekly basis. That is why, in August 2019, we produced our first ‘6 x 6’ report. We wanted to find funds that had performed consistently well over the last three years.
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To find the funds, we screen the universe for those that have returned 5% every six months over a three-year period. It is very unusual to find a fund that has managed to achieve the target in all six of the six-month periods, but we can usually find a handful that have done it five out of six times. We have just run our latest report and there are currently eight funds, five of which have also more than doubled in the last three years.
| Saltydog Investor 6x6 Report - August 2020 | Aug 18 | Feb 19 | Aug 19 | Feb 20 | Aug 20 | Feb 21 | 3-year return |
|---|---|---|---|---|---|---|---|
| to | to | to | to | to | to | ||
| Jan 19 | July 19 | Jan 20 | July 20 | Jan 21 | July 21 | ||
| Funds that have risen by 5% or more in 5 out of 6 periods | |||||||
| Baillie Gifford Positive Change | -5.2% | 16.2% | 11.3% | 39.0% | 32.9% | 6.7% | 142% |
| Fidelity Global Technology | 0.0% | 21.9% | 7.0% | 14.8% | 23.8% | 12.8% | 109% |
| L&G Global Technology Index | -5.2% | 27.9% | 9.4% | 15.6% | 18.4% | 15.3% | 109% |
| Sanlam Artificial Intelligence | -5.5% | 28.2% | 6.3% | 21.9% | 20.9% | 6.4% | 102% |
| Aberdeen Standard Global Innovation | -5.9% | 27.5% | 8.5% | 14.1% | 24.3% | 9.1% | 101% |
| GAM Star Disruptive Growth | -6.1% | 21.8% | 5.7% | 15.1% | 35.4% | 5.5% | 99% |
| Janus Henderson Global Tech | -5.1% | 27.4% | 6.1% | 11.7% | 19.0% | 10.3% | 88% |
| New Capital US Growth | -7.6% | 11.0% | 9.3% | 15.0% | 17.1% | 17.9% | 78% |
Data source: Morningstar. Past performance is not a guide to future performance.
All the funds have a bias towards technology, even though they are not all in the Technology and Telecommunications sector. The leading fund, Baillie Gifford Positive Change, is in the Global sector. It has more than 15% invested in technology, and nearly 40% in healthcare (mainly in pharmaceuticals, biotechnology and medical equipment). Its largest holding is in Moderna (NASDAQ:MRNA), an American company that focuses on vaccine technologies and has produced one of the Covid-19 vaccines. The next two largest holdings are the Dutch company AMSL, which produces semiconductor equipment systems, and then the electric car company Tesla (NASDAQ:TSLA).
The next two funds in the list are from the Technology and Telecommunications sector, and then there is the Sanlam Artificial Intelligence fund from the Specialist sector. This used to be the Smith and Williamson Artificial Intelligence fund. It was taken over by Sanlam Investments earlier this year, but the management team has not changed. It is a fund that has regularly featured in our tables and its largest holding is in Alphabet (NASDAQ:GOOGL), the parent company of Google.
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The last fund, New Capital US Growth, is in the North America sector but also has Alphabet in its top 10Â holdings, along with Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB)Â and Tesla. These giant US technology firms led the recovery last year, but slowed earlier this year as fears mounted that they had become overvalued. They seem to be back on a roll again.
For more information about Saltydog, or to take the two-month free trial, go to www.saltydoginvestor.com
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.