Portfolio Management Services



Investment Objective
The Portfolio is a diversified equity portfolio that endeavours to achieve long term growth through capital appreciation of fundamentally strong businesses based on the price pattern behavior of the stock.


Positioning
The Portfolio is suitable for investors with a medium to high-risk appetite and an investment horizon of above eighteen to twenty four months.


Investment Strategy
The focus is on identifying stocks with significant upside using Technical Analysis while ensuring that the basic fundamentals of the stock are appropriately evaluated and factored into the decision making process. The investment strategy follows a mix of a top-down and a bottom-up approach.

The top-down approach is used to formulate a view on the broad indices and evaluate their impact on the larger market, leading to a broad asset allocation call and also identify the sectoral themes. A bottom-up approach is based on the belief that there are always individual companies that provide attractive investment opportunities in a particular industry and market condition. The weightage given to the top-down vs. bottom-up approach would vary from time to time, depending on the pattern formations and other technical indicators for the sector and/or company. The Portfolio Manager maintains a diversified portfolio by investing in a basket of stocks without any undue concentration in any stock or sector. The Portfolio comprises of primarily large cap stocks, but the flexibility to invest in mid-cap and small-cap momentum stocks is retained.

Although the investment strategy has a long term bias, the portfolio may sometimes be actively traded to take advantage of certain market trends, with an endeavour to enhance returns at commensurate risk levels. The portfolio is created to achieve superior absolute returns and is not designed for relative performance. Thus, during shorter time periods, the portfolio may not move in line with the overall markets with a focus on longer term appreciation.


Investment style
Sideways Trends
Major allocations would be made in trending and corrective stocks having high-return expectations. The hallmark of the strategy and approach is that stocks would be gradually accumulated to generate better returns and use capital efficiently.

Downward Trends
When markets are uncertain or have a downward bias, the Portfolio Manager will attempt to protect capital by using tactical asset allocation. Large asset allocation calls will generally be taken in case a sustained and sharp decline in the markets in expected.

Uptrending Trends
When markets have a clear upward bias, the Portfolio Manager will attempt to maximize returns by deploying upto 100% of capital in equities where momentum is favourable and down side risks are small.

In all the types of market scenarios, the key is the ability to exit stocks at the right time or rebalance weightage gradually towards other stocks which are forming positive chart patterns.