Piotroski is our top JSE portfolio

We have been tracking the JSE performance of all our portfolio strategies created on the trough of 20 Nov 2008 (11 weeks ago). So far the best performing one is the "pure-form" Piotroski strategy that only purchases shares with a Piotroski F-Score of 8 or 9, a Price-to-book ratio less than 1.15 and a PE ratio less than 1.5x the ALSI (about 12).

A scan is run on each Monday to seek out new candidates for inclusion in the portfolio and to sell any holdings that have their F score drop below 8 due to a results (final or interim)announcement. On 20th Nov 2008 (inception date) it aquired 9 stocks and on 20 January 2009 and 5th Feb it aquired one stock respectively. On 5th Feb DRD Gold announced their interim and their Piotroski score dropped from 8 to 4 and the share was disposed for a 135% profit.

As our backtests on the 2003 JSE crash showed, this portfolio strategy is also performing remarkably well in such a short space of time (for a so-called Value strategy that is). It is currently out-performing the ALSI by 1.69 times (36.8% total return versus ALSI's 21.7%) since inception on 20 Nov 2008. For the calendar year 2009, the Piotroski portfolio has shown 13.5% return versus the ALSI's 0.82% (that is a remarkable 12.68% outperformance this year so far, or 16x the ALSI return!) Click on the image below for a larger more detailed view.



Piotroski's strategy was also the top performing strategy on the AAII web site for 2008, the only strategy out of 50 they are running that showed a positive return on the US markets!



For a list of the Piotroski stocks we are holding, as well as those still qualifying for purchase (ie they have not "run away" and become too expensive) in addition to a monthly email update on new candidates and current holdings that no longer qualify and must be sold, email powerstockz@gmail.com for an order form for R360 for 12 months of Piotroski Strategy Updates (SKU=PWS-PSU12M)