Where is an investor with a great track record stashing his cash today?
When a very successful private investor shares the details of his small cap portfolio, it's always worth taking note.
Last year, I took a look at a number of portfolios from people who make their living from investing. One of the most daring was that of Roy Mitchell, aka "TheMufinman" on the Fool's discussion boards.
Roy has enjoyed a very high degree of success over the years, often taking a declarable interest in small-cap companies. Since his previous top holdings were featured in November, they're ahead by a mean average of 23% at the time of writing. This compares very favourably to the FTSE 100's small drop over the same period.
But Roy's real performance has been far better in real terms, as his single biggest investment was the best performing by a street over the last six months, gaining over 72%. Also, Roy managed to exit the only loser from his list of five at a profit.
So without further ado, we now want to know what winners the Mitchell millions are backing today -- and Roy has been kind enough to share those with us:
1. AorTech International
AIM-listed AorTech International (LSE: AOR) is still Roy's largest holding. In fact, its growth in value means it now represents 35% of his portfolio, and Roy has a declarable interest of over 6% of the shares.
Aortech is focused on commercially developing its biologically stable "Elast-Eon" materials for use in medical devices. At 333p, the company is now valued at £16.3m. It recently shifted its manufacturing base from Melbourne, Australia to Minnesota, and managed a small profit for the half year to the end of September.
Roy admits Aortech is still a high-risk investment, but he's sitting on a six-figure profit and remains very optimistic about the company's prospects.
Roy now has 15% of his portfolio invested in promotional advertising space seller SpaceandPeople (LSE: SAL). During 2011, the company made an underlying operating profit of £1.83m on sales of £10.66m.
At the current price of 65p, SpaceandPeople's market cap is £12.6m. If the brokers are right, the forward price-to-earning (P/E) ratio is a little over 7 and the yield 5%.
Roy doesn't expect fireworks but anticipates steady progress, and he's recently pocketed a 2.9p dividend.
Corero Network Security (LSE: CNS) has slipped into the number three position, but still represents 12% of Roy's portfolio. The price has slipped back to exactly where it was last November along with so much else recently, valuing the network security systems company at £27m.
Roy shared his thoughts with Foolish readers over a year ago when the share price was 37p. He sees the company growing quickly over the next year or two, helped by recent contract wins. In the last full year, Corero made a small operating profit, but an overall loss.
The filtration and environmental technology Porvair (LSE: PRV) remains in number four position accounting for 5% of Roy's holdings. Again, he anticipates further steady progress here. The price has fallen of late to 113.5p, valuing the fully listed FTSE fledgling company at £48.4m.
In the last full year, Porvair made a pre-tax profit of £4.5m on sales of £68.1m. It also spoke of a record order book, while brokers' expectations for 2013 place the shares on a forward P/E of 11. The company has steadily grown sales and profits over the years and Roy clearly sees more to come.
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Out with the old…
Roy sold out of Cambridge-based technological innovations company Sagentia (LSE: SAG), during late February at a handsome profit.
In with the new…
He used the proceeds to add to his holdings in Sinclair IS Pharma (LSE: SPH), buying in a little under 22p per share during late February. The pharmaceuticals company helps its customers look and feel better, through its focus on dermatology, oral health and oncology supportive care.
Sinclair made a small loss on sales of £23.4m to the half year and is valued at £104.2m at 26p. The brokers see a £3.66m pre-tax profit next year.
Roy has also bought into access equipment maker Tanfield (LSE: TAN) -- a company that came to the attention of Stephen Bland in February last year at 29p.
Roy bought shares at 54p. They're currently ahead a little at 56.5p. The brokers see the company making earnings of 4.6p next year after continuing to make a loss this year. Roy has been tempted in by Tanfield's 27% stake in Smith Electric Vehicles US Corp, the world's largest manufacturer of commercial electric vehicles.
Oxford Catalysts (LSE: OCG) is another recent purchase at 49p, versus the current price of 47.5p. So if you agree with Roy that the fuel innovation company has a big future, then you can take the ride at the same price.
This is a "jam tomorrow" company, which had £17.1m in cash at the end of December, is now valued at £44.2m. But it could have a big future if its efforts to develop technology for the production of clean synthetic fuels from both conventional fossil fuels and renewable sources such as bio-waste come good.
Finally, various blue chips make up around 12% of the Mitchell millions, with a further 5% in corporate bonds. (By the way, if you harbour ambitions to join Roy among the ranks of millionaire private investors, this special free report -- "Ten Steps To Making A Million In The Market" -- should help you on your way!)
The last time I looked at Roy's investments, I mentioned he had given up spread betting to play more golf. He'd like Foolish readers to know that his handicap is down from 20 to 14. So what do you think -- is Roy headed for further investing glory and a lower handicap still, or should he get off the greens and spend more time at his PC?
Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors Of 2012" -- our guide to three favourable industries. This free report will be dispatched immediately to your inbox.
David does not own any of the shares mentioned in this article.
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