Thanks for providing such a nice writeup.
I am wondering about your thought process behind the overlap between Nifty constituents and separately holding HDFC bank and RIL. Both HDFC bank and RIL have ~10.5% weightage in nifty, so in essence your portfolio weightage for RIL and HDFC bank comes out to be 11.4% and 9.4%. Have you defined weightage limits upto which you will let a stock run and how do you think about position sizing? And given that you have a portfolio overlap of ~20% with nifty, why not have a lower position size in the large nifty constituents?
Are your position sizes cost weighted or is it according to MTM? Do you have risk mitigation rules at a portfolio level (i.e. maximum weightage of individual scrip, sectoral weightages, cashflow diversification of businesses you are owning, etc.)?
I ask because I want to understand how you think about the impact of different macro factors on your portfolio (eg: crude prices, USD/INR, India specific risk, etc.). Looking forward to your thoughts!
Thanks again for sharing your thought process.