What’s the Boon Fund?

Hi there. I'm Boon. My fund consists of my two real life portfolios - my ISA and my SIPP. I’ve been investing for more 10 years, although only got more serious in terms of my goals in 2021. I realised I had a knack for consistently getting returns, an ambition to retire early, and finally a big enough capital base to see meaningful returns. Not an ISA millionaire yet - but the combination of my ISA and SIPP balances, almost there.

I’ve achieved a +49% performance gain over 3 years (2021-2023) compared to the FTSE All-Share of +15%. In addition, I have outperformed the FTSE All-Share every year for each of those three years. Learn more in my 2023 Review post.

+9.7% gain in 2023 (compared to +3.8% for All-FTSE)

+12.0% gain in 2022 (compared to -3.4% for All-FTSE)

+21.6% gain in 2021 (compared to +14.6% for All-FTSE)

I invest in only UK shares. And within that universe, predominantly in the small cap space. I do hold some mid and large caps where they fit my investment thesis, and also for diversification purposes.

My investment style is easy for any other amateur private investor to follow, because it is low maintenance. I myself work a very intense full-time job, and do The Boon Fund management in the evenings and weekends. In 2023, only 27 tickers touched my portfolios.

What’s my style?

I don’t know if I’d classify myself as a value investor - I often have blue-sky, pre-profit, high growth companies in my portfolio.

If I had to describe what shares attract me, it would be the combination of the following:

1. Under the radar companies. When a share has lots of investors swarming all over it, I avoid it.

2. Poor sentiment due to recent disappointments. I’m looking for shares that have burned and disappointed shareholders. Ones where investors “bargepole” and vow never ever to buy.

3. Tangible catalysts for growth & operational leverage. I’m looking not just where the top-line can grow, but also where the gross or net margin can grow.

4. Decent balance sheet. Ones that allow me to sleep at night, no risk of a sudden “zero”. Gives management time to turn things around, and working capital to grow the top-line.

Why the four above? Because it translates to amazing returns through:

1. When a share gets increases in investors following, typically there’s more buying demand, and thus creates price momentum.

2. Prices often irrationally go so low, below intrinsic NTAV value even, because too many investors bargepole it and won’t consider it even at ridiculous prices.

3. As top-line growth starts to show as well as margin growth, future PE expansion follows shortly, boosting share price appreciation.

4. My buys are cheap usually because the company isn’t doing well; so having a decent balance sheet minimises the risk of an equity fundraising. Which is usually very, very bad for private investors who can’t get into the preferential terms of an institutional bookbuild.

Why another email / push notification?

Here is my promise to you, as a subscriber to my Substack:

• I’m an amateur investor myself. I am not here to sell you anything to buy, or serve you lots of ads, unlike professional finance content writers. This Substack is not how I pay my bills. Just my honest thoughts and writings on the portfolios and shares.

• Pure motivation. Why am I baring my portfolio to everyone? It helps to keep me accountable - so I take buy/sell decisions seriously. Drives me to be invested to deliver the best return I can in front of an audience. Holds me accountable to do detailed research that can stand up to the scrutiny of others. And makes this less of a lonely endeavour; hopefully I get some illuminating comments.

• No frequent spam. I don’t have time anyways, working a full-time job. You’ll typically get 2-4 new posts a month from me.

• Upfront on what you’ll get. Monthly performance reviews, posts on each buy and sell I do, and my commentary and analysis on shares that are on my watchlist that I find fascinating.

• Transparent. Free for now for everyone. Maybe I’ll start charging one day, maybe not. Substack is a reputable platform, you can unsubscribe at any time.

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