The Perfectly Balanced Stock Portfolio

Neil Woodford is the man of the decade when it comes to hedge funds

The CF Woodford Equity Income Fund is one of the most impressive funds year on year for growth and stability, and has released the full list of companies he has invested in and the weight of each investment in the fund. His fund is very very popular, and often considered as the best Hedge Fund Manager of the past 10 years.

Lets Take a look at his Income fund top 10 holdings:

Imperial Tobacco 



British American Tobacco



Legal & General

Reynolds American

Provident Financial

BAE Systems

In Summary:

  • 48.4% Of Total Portfolio in 10 Holdings
  • 3 Consumer Goods
  • 3 Healthcare
  • 2 Financials 
  • 1 Industrial
  • 1 Telecommunications

So If you are unsure what a balanced Stock portfolio is, or are looking at owning stocks in a balanced portfolio, look no further. Only 48% of the whole hedgefund is in 10 holdings. In those holdings, only 3 in Consumer Goods, and 3 in Healthcare. People make mistakes of investing in multiple businesses in the same sector, and only holding a few holdings. Diversification is the key!

The Young Investor


About andrepartridge
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5 Responses to The Perfectly Balanced Stock Portfolio

  1. cheekos says:

    Mr. Partridge, I don’t believe that CF Woodward Equity-Income Fund is the prototypical balanced fund; because, the ten largest holdings appear to primarily be Value (or mature) stocks. Now, normally equity-income portfolios often seem to focus more on dividend-paying companies, and they do tend to shy away from Growth industries, such as Technology.

    Perhaps this hedge fund has been consistently quite successful ; however, perhaps a disclaimer is warranted, lest such a portfolio be considered as the typical one-size-fits-all portfolio. That would certainly imply that this one portfolio would meet the needs of all investors–young and old, rich and poor, etc.


    • Hi Joe

      Thanks for your comment. Although this portfolio has no growth holdings, I believe it is a good example of how varied a portfolio needs to be in the biggest holdings. Yes it is costly for buying shares in multiple company as you have to pay the investment fee, it was stated as an example to show how little risk the portfolio has in its biggest holdings. Fully agree with it not being a perfect portfolio in terms of diversification, but hopefully it comes across as a useful lesson for persons looking to invest and showing a good starting point for new long term investors. Really like the new post on Balancing your portfolio with Bonds and securities

      Kindest Regards



  2. cheekos says:

    Mr. Partridge, for the most part, I agree with much of what you write on your blog. One point, however, that I would make, is that virtually every stock that you cite appears to be traded primarily in the U. K.

    When I worked as a financial advisor in the U. S, I had a number of overseas clients. For the most part, they also had investments–and advisors–back home, or in other European countries. Also, in some cases, they had even shorted the Euro to negate the currency risk of it. Accordingly, we focused on U. S. or other countries for that part of their (overall) portfolio that I helped them with.

    Now, I certainly would not suggest that our markets are better–or stronger–however, as the overall investment universe considered becomes more diverse, that is but another way to reduce volatility.

    Liked by 1 person

  3. cheekos says:

    I also understand that access to market research regarding foreign corporations can be sorely lacking. Perhaps 10-12 years ago, I went onto our Firm’s web site looking for S & NP reports on Toyota, and only one U. S. analyst followed the company, at the time. So, as many brokers do, they opt for the widely-known. But, Toyota?


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