Recent star performers

We continue our look at recent winners in the market, following on from research that indicates a ‘momentum’ strategy can yield positive results.

The end of one week and the beginning of another means it is time to recheck the performance of our momentum strategy and seek out the candidates for the coming week.

The most successful shares of the FTSE 350 in the week 4 April to 11 April were:

Tullett Prebon – up 9.2%
Lancashire Holdings – up 7.1%
Standard Chartered – up 4.6%
Unilever – up 3.8%
Tullow Oil – up 3.4%

Between 14 April and today, these five returned an average of -1.57%, with a strong performance by Tullow Oil being outdone by a 5.55% drop in Lancashire Holdings.

Nevertheless, we will press on with this strategy, as well as bringing in a monthly and quarterly focus over time. For the week 14 April to 17 April, the biggest winners were:

- Britvic – 8.4%
- International Consolidated Air – 8.1%
- Sports Direct – 7.9%
- Ashtead – 7.8%
- Supergroup – 7.7%

Again, we’ll review these in a week’s time. I have also looked at monthly performance. Since 1986, buying the six best performing shares of the previous three months would have provided an average return of 2.2% per month. When using leverage, these returns (and the losses in some months) would have been magnified as well. At the end of the month, I’ll look at the best performers of the February to April period.

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