Pollen Street Group

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My Approach to Investing

Summary

I focus my efforts on small and mid-sized companies searching for those where the growth prospects are not reflected in the share price. I am disciplined about the valuation I am prepared to pay; I don’t like to pay over 20x forecast earnings and favour companies that are paying a growing dividend and have a prospective dividend yield of at least 2.0%. I search for companies generating strong cash flow and if not having net cash, then debt levels that is low to moderate. Where possible I like to meet management and understand what makes them tick and if they have a decent stake in the business so much the better; our interests are aligned! I like companies that are beating expectations and earnings forecasts are being upgraded. Ultimately I am looking for the “double whammy” that comes from a re-rating and from faster than expected earnings growth. Having found a potential investment I look at the share price chart as it can help with timing; so often resistance and support levels work. I size a position based on my assessment of the potential Risk and Reward of the stock. I hold between 20 and 30 holdings, making use of investment trusts for overseas or thematic exposure.

The most important number to me is the return of the Portfolio! I try not to get too emotionally involved with individual companies; if I cut a holding and it immediately bounces, so be it. All that matters is the return of the Portfolio, each month, each year, each decade!

I invest principally in the UK

I invest mainly in UK stocks as that is where I have gained my experience. There are clearly opportunities to invest in overseas companies, and it is fair to say that it is now much easier to get the information you need. I think that for a private investor, such as myself, with limited time resources, it is better not to spread my net too wide. For me, it makes sense to focus my efforts on a market where I have experience and familiarity.

I focus on mid and small-sized companies

I focus on mid and small-sized companies but not exclusively.

The FTSE 100 Index comprises the largest 100 companies and by value accounts for around 70% of the UK market, The FTSE 250, (the next 250 companies) accounts for about 25% of the market by value, and the FTSE Small Cap, FTSE Fledgling and FTSE AIM, the remainder.

The table below shows the percentage returns over 1, 3, 5, and 10 years to 31st December 2020

My Approach to Investing

Summary

I focus my efforts on small and mid-sized companies searching for those where the growth prospects are not reflected in the share price. I am disciplined about the valuation I am prepared to pay; I don’t like to pay over 20x forecast earnings and favour companies that are paying a growing dividend and have a prospective dividend yield of at least 2.0%. I search for companies generating strong cash flow and if not having net cash, then debt levels that is low to moderate. Where possible I like to meet management and understand what makes them tick and if they have a decent stake in the business so much the better; our interests are aligned! I like companies that are beating expectations and earnings forecasts are being upgraded. Ultimately I am looking for the “double whammy” that comes from a re-rating and from faster than expected earnings growth. Having found a potential investment I look at the share price chart as it can help with timing; so often resistance and support levels work. I size a position based on my assessment of the potential Risk and Reward of the stock. I hold between 20 and 30 holdings, making use of investment trusts for overseas or thematic exposure.

The most important number to me is the return of the Portfolio! I try not to get too emotionally involved with individual companies; if I cut a holding and it immediately bounces, so be it. All that matters is the return of the Portfolio, each month, each year, each decade!

I invest principally in the UK

I invest mainly in UK stocks as that is where I have gained my experience. There are clearly opportunities to invest in overseas companies, and it is fair to say that it is now much easier to get the information you need. I think that for a private investor, such as myself, with limited time resources, it is better not to spread my net too wide. For me, it makes sense to focus my efforts on a market where I have experience and familiarity.

I focus on mid and small-sized companies

I focus on mid and small-sized companies but not exclusively.

The FTSE 100 Index comprises the largest 100 companies and by value accounts for around 70% of the UK market, The FTSE 250, (the next 250 companies) accounts for about 25% of the market by value, and the FTSE Small Cap, FTSE Fledgling and FTSE AIM, the remainder.

The table below shows the percentage returns over 1, 3, 5, and 10 years to 31st December 2020

ABOUT ME

I launched this website in January 2012 so that I could share with other investors how I manage my investment portfolio; the JIC Portfolio.

There is complete transparency with the current portfolio and all transactions shown. I explain all trades through my blog and hope the site provides food for thought to more experienced investors as well as helping those who are new to managing their own portfolios. I believe JohnsInvestmentChronicle is unique: There are plenty of “tipsters” who will remind you of the “good ones” and quietly forget the disasters; I do not have that luxury as the Portfolio is there for all to see, backed with real money; mine! I have to confront my mistakes and deal with them; there is no hiding place! Above all, this is a true expose of the trials and tribulations of a private investor!

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Pollen Street: Q3 Trading Update

Pollen Street: Q3 Trading Update

Pollen Street: Q3 Trading Update

Pollen Street Group (POLN.L; FTSE250 Index. Market capitalisation: £527m, 884p, 4.7% of JIC Portfolio) Pollen Street Group Limited is an alternative asset manager company. The Company is engaged in investing with the financial and business services sectors across both Private Equity and Private Credit strategies. It has a set of asset management activities focused on managing third-party assets under management (AuM) (the Asset Manager) together with on-balance sheet invest

Nov 184 min read

Pollen Street: Half-year results

Pollen Street: Half-year results

Pollen Street: Half-year results

Pollen Street Group (POLN.L; FTSE250 Index. Market capitalisation: £527m, 876p, 5.0% of JIC Portfolio) Pollen Street Group Limited is...

Sep 165 min read

JIC Portfolio: Short Review of each of my positions (I)

JIC Portfolio: Short Review of each of my positions (I)

JIC Portfolio: Short Review of each of my positions (I)

Background: I have discussed a potential market melt-up in my last two monthly reviews. I think that is what we are witnessing. I...

Aug 115 min read

JIC Portfolio Trades - Increasing cash through multiple sales

JIC Portfolio Trades - Increasing cash through multiple sales

JIC Portfolio Trades - Increasing cash through multiple sales

I have decided to raise a little cash in the JIC Portfolio. We are not far off the usually volatile summer months and there must be a...

May 221 min read

Pollen Street - Q1 update

Pollen Street - Q1 update

Pollen Street - Q1 update

Pollen Street Group (POLN.L; FTSE250 Index. Market capitalisation: £487m, 802p, 5.7% of JIC Portfolio) Pollen Street Group Limited is...

May 151 min read

Pollen Street - Excellent 2024 Results

Pollen Street - Excellent 2024 Results

Pollen Street - Excellent 2024 Results

Pollen Street Group (POLN.L; FTSE250 Index. Market capitalisation: £436m, 716p, 5.3% of JIC Portfolio. 5.0% target weight) Pollen...

Mar 254 min read

JIC Portfolio Trade - Added to existing position

JIC Portfolio Trade - Added to existing position

JIC Portfolio Trade - Added to existing position

Pollen Street Group (POLN.L; FTSE Small Cap. Market capitalisation: £446m, 731p, 5.0% of JIC Portfolio. Medium Risk/High Reward = 5.0%...

Dec 12, 20241 min read

Pollen Street - Decent Q3 update

Pollen Street - Decent Q3 update

Pollen Street - Decent Q3 update

Pollen Street Group (POLN.L; FTSE Small Cap. Market capitalisation: £446m, 728p, 4.2% of JIC Portfolio. Medium Risk/High Reward = 4.0%...

Dec 12, 20243 min read

Current thoughts on my positions: Part II

Current thoughts on my positions: Part II

Current thoughts on my positions: Part II

Serica Energy is 123p, 5.4% of the JIC Portfolio. My last comments were yesterday, when I added to my position at 113p. I watched the...

Sep 11, 20247 min read

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

JIC Portfolio Trades - Holding sold and added to an existing position (Pollen Street)

#jicportfoliotrade

Sep 4, 20241 min read

Pollen Street - Interim Results - steady growth

Pollen Street - Interim Results - steady growth

Pollen Street - Interim Results - steady growth

Pollen Street Group (POLN.L; FTSE Small Cap. Market capitalisation: £436m, 700p, 3.7% of JIC Portfolio. Medium Risk/High Reward = 4.0%...

Sep 4, 20244 min read

JIC Portfolio Trades - Two existing positions increased to target weights

JIC Portfolio Trades - Two existing positions increased to target weights

JIC Portfolio Trades - Two existing positions increased to target weights

#jicportfoliotrades With the proceeds of my sale of Hargreaves Lansdown to 3.0%, I have increased two positions up to their target...

Jun 18, 20241 min read

JIC Portfolio Trade - New position bought

JIC Portfolio Trade - New position bought

JIC Portfolio Trade - New position bought

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May 8, 20245 min read

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