Ed Croft and Oliver Cooper reveal the processes behind the Stockopedia investment club.

2. Disclaimer
2
The following pages within this document have been produced by Stockopedia Ltd ("Stockopedia") for marketing purposes only. All rights regarding these pages are reserved. It is not
for general circulation.
Stockopedia is a subscription-based data & screening web service for self directed individuals who have an adviser and/or are comfortable making their own decisions. Use of our data
is subject to express Terms of Service. This service is intended to be used and must be used for informational purposes only. Our Stock Reports and screens are based on underlying
data from other suppliers including Refinitiv which is believed but not guaranteed to be accurate. Any figures cited are subject to change or possible correction. If we are notified of a
possible error, we will endeavor to notify our supplier of this issue, although we cannot be certain that they will be willing to correct the error identified. Any forward looking information
is based on the Consensus Analyst Estimate as defined by Refinitiv and is subject to their assumptions but does not involve subjective judgement by Stockopedia.
We are not regulated by the Financial Conduct Authority. Stockopedia is not a broker/dealer, and we are not in the business of the giving or receiving of financial, tax or legal advice.
None of our content constitutes or should be understood as constituting a recommendation to enter in any securities transactions or to engage in any of the investment strategies
discussed in our content. We do not provide personalized recommendations or views as to whether a stock or investment approach is suited to the financial needs of a specific
individual.
It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a
professional in connection with or independently research and verify any information you find in this presentation. Accordingly we will not be liable, whether in contract, tort (including
negligence) or otherwise, in respect of any damage, expense or other loss you may suffer arising out of such information or any reliance you may place upon such information.
We would like to draw your attention to the following important investment warnings:
- The value of shares and investments and the income derived from them can go down as well as up.
- Investors may not get back the amount they invested.
- Past performance is not a guide to future performance.
Please note that all data in this document is historic and dated when this document went to print: 19th October 2020

3. Starting the Club

4. Goals
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- Encourage & educate all staff to “think like an investor” -
hopefully to the benefit of all subscribers.
- Let novices experience the full stock market journey alongside
more seasoned investors.
- Share research and tap into the broader team’s scuttlebutt.
- Profit !

5. Ownership
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- The portfolio is split into ‘units’.
- Each month, members buy ‘units’ at a given price (via direct debit)
- The price of the unit reflects the underlying value of the portfolio.
- In order to manage cash, units can only be bought and sold at
fixed intervals.
We are using Interactive Investor as brokers
(no affiliation) - they support Investment Clubs.

6. Meetings
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- The club meets once or twice monthly. As part of the agenda:
- Review of Previous Minutes
- Portfolio Review
- Market Review
- Between 1 and 3 Stock Pitches
- Knowledge Share
- Proposals to be voted on
Each member has an equal weighted vote on the proposals/pitches.

7. Investment Process

8. Investment Process
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- Buy Rules
- Minimum StockRank > 75
- Mkt Cap > £20m
- Share Price > 200 day Moving Average
- Voted for by > 50% of the Club
- Stop Loss Rules
- Price Based & Fundamental Based
- Sell Proposals
- Change in fortune for the business
- Voted in by the Club

9. Voting
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- Voting process has evolved since inception.
- Started with an ‘in meeting’ hands-up vote.
- Recognised ‘groupthink’ issues associated with this.
- We now use Google Form Survey to ensure independent voting.
- When more than 1 company pitched, qualifying question of “how
many positions should we buy?” to prevent ‘buy bias’.

10. Voting Example
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How many stocks should we buy in total?
Calculate weighted score:
(0.583*1)+(0.25*2) = 1.083 -> Buy 1 new position

11. Pitching a Stock

12. Pitching a Stock
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- Every meeting 2 or 3 companies are pitched to the club
- Each pitch generally takes between 10 and 15 minutes
- A standardised pitch template is used to help accelerate research
- Ideas are sourced either from:
- Social sources - e.g. Stockopedia, Twitter, Research Tree
- Stock Ranks & Screens
- Q&A is encouraged. Generally only 1 of the shares is bought.

13. Pitch Template
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1. Profile
2. Business & Model
3. Market & Competition
4. Financials & Ownership
5. Valuation - relative & intrinsic
6. Trends & Catalysts
7. Risks & Hurdles
8. Recent Trading & News
9. Sentiment

14. Now sharing all our research on site
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We have begun sharing all our
research, votes and portfolio
performance on the Stockopedia
website.

15. Performance

16. Results
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Returns since Club Inception (06/02/20) to 16/10/2020. Past performance is no indication of future return.

17. Results
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6 month returns for Stockopedia Club Portfolio & Funds in the IA Sector, ending 30/09/20. Past performance is no indication of future return.

18. Results
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6 month returns for Stockopedia Club Portfolio & Funds in the IA Sector, ending 30/09/20. Past performance is no indication of future return.

19. Current Portfolio

20. Current Portfolio
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Returns of the positions that the fund currently holds, as at 19/10/2020. Past performance is no indication of future return.

21. Current Portfolio
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The sector chart on the right shows a
strong bias towards - healthcare,
technology and mining shares - all of
which have been strong beneficiaries
of the current covid & easy
fiscal/monetary macro environment.

22. A strong “QM” bias
22
The bubble chart on the right
illustrates how strongly we are
targeting high Quality and high
Momentum in almost every share
owned.
The portfolio consists more
generally of “Speculative, Small Cap,
High Flyers”. Our own research
shows this blend of share to have
been among the strongest
performing of all the style
combinations.

23. Appendix

24. The Pitch Template (1)
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25. The Pitch Template (2)
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26. The Pitch Template (3)
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27. Results
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6 month returns for the IA Sector & Stockopedia Club portfolio ending 30/09/20. Past performance is no indication of future return.