In the first quarter (Q1) the Quant Value newsletter performed very nicely (again).
The European portfolio put in an outstanding performance whereas the North American portfolio’s return was only slightly lower than the index (but has improved substantially since then).
How we calculate performance
Before we get to the numbers a short reminder on how we calculate the newsletter’s performance.
Exclude dividends and 2% fees
We calculate the performance without dividends and we include a 1% buying and selling fee (2% in total) for all investments bought and sold.
We do not include dividends (even though it will make the performance look even better) to make the performance comparable with the indices (which also do not include dividends).
And a 1% buying and selling fee is conservative as you can get away with a lot lower fees is you use an online broker.
Equal to the results you can get
We thus aim to make the newsletter’s performance calculation equal to what you can achieve if you follow its recommendations.
2014 1st quarter performance
First of all the table below shows the performance of the indices in the first quarter of 2014.
Source: Yahoo Finance
And this has been the performance of the newsletter over the same period.
Europe substantially outperforming the indices
As you can see, in the charts below, the European recommendations did very well, substantially outperforming the indices, with the North American ideas only slightly behind the index.
Europe: 14.3% better than the index
North America: 0.1% behind the index
Performance since inception
The two charts below show the total performance of the newsletter ideas since they were started.
Europe return since it was started in July 2010:
North America return since it was started in October 2011:
As you can see the European ideas have substantially outperformed the index and the North American ideas are still slightly below the index after catching up a lot in 2013.
Long-time subscribers will remember this was mainly because North American investment ideas did not include Apple, as well as a few other large companies, which were a major driver of the good performance of the S&P 500 in 2012.