Queens Gate Fund

11/9/17

This is a portfolio of shares that I have been selecting and very recently bought. It's a growth portfolio, mainly consisting of small and medium companies, which have been screened using the following filters:

1. Stockopedia Stock Rank (SR) > 80.

2. Quality Rank (Stockopedia) > 70.

3. Price within 10% of Ben Graham's Rule of Thumb.

4. ROCE > 10% (preferably 15%).

5. P/E < 3 yr earnings growth rate (egr).

6. Rising sales/ turnover, profit, eps, free cashflow, (dividends).

7. Piotroski >6, Altman Z score >3.

8. Quick ratio>1, Current ratio >1.2.

8. Low risk of earnings manipulation.

9. FCS ps > norm eps and div ps.

10. Net debt < x3 net profit.

11. Stable margins.

12. Director buying/selling reasonable.

13. Reasonable share dilution.

14. Positive company outlook.

15. Other investors seem comfortable with investment.

    The aim of the filters is to identify companies which are growing in terms of turnover, profits, earnings per share and cash. They must have a strong balance sheet, not be overly diluting equity and the directors not selling en mass.

     There is a small amount of discretion, if a company just misses the mark on one or two of the filters, it might still be acceptable. Director buying/selling and other investors views is difficult to quantify.

There are 14 companies: AMO, CAKE, FOUR, GAW, IGR, MACF, PETS, PLP, PSN, XLM, SOM, STAF, STHR, TAP.

I have tried to diversify and invested £3,000 in each company. The portfolio is available on Stockopedia as Edwinlefever's/ Queens Gate Fund.