Smallcap momentum portfolio

Q&A: Questions & Answers Portfolio Q&A
102

Yes I did notice. Apar is now at it’s 6 month support. Fundamentally it’s a great company and might go through time correction, or the Polycab saga correction.

1 Like
103

Hi Ascendant,
Do you know how often Gulaq small case rebalanced ? How many stocks they hold ? Just trying to understand trading cost. I am Interested to buy small portion of my portfolio in this small case once market gives opportunity to enter
Thank you

104

@1Pranav Hello, Gulag 6 holds 15 stocks and they rebalance every month.

1 Like
105

Yes, but I must tell you the weigtages are no where close to equal. Like 1 stock has 0.5% weightage and one has 10% weightage. There is no point having such a low weightage in any stock.

I have purchased Gulaq Sub, and will invest from next month onwards only in those stock which they have given > 6% weightage.

2 Likes
106

So Ascendant…the idea of following Gulaq 6 is nice and seems simple.
I think many of us who started journey in 2020 or mid 22, have observed fairly good run at pf level.I observed the names in pf are like taking turn at rising amongst them…when those who ran too much are taking break others start running…and its going on since past 1 month of so.
As 90% of my pf are smallcaps and in the present run as i try to control greed, i feel like “hooked to quick run”.
My query1 is related to ebbtide.
1.Is there any smallcase which stood up or was able to grow during oct-21 to june-22 ?
Query 2
2.what are your thoughts, going after individual names rather going directly on to smallcase itself ?

1 Like
107

Update for entry on 23rd Jan 2024

Based on ranking

  1. BSE
  2. BSOFT
  3. IRCON
  4. HUDCO
  5. SUZLON
  6. ITI
  7. COCHINSHIP
  8. PCBL
  9. JYOTHYLAB
  10. SOBHA
  11. NBCC
  12. NLCINDIA
  13. MRPL
  14. KALYANKJIL
  15. KAYNES
  16. MEDANTA
  17. SWANENERGY
  18. SJVN
  19. WELCORP
  20. CHALET

Based on A → Z for easy tracking

  • BSE
  • BSOFT
  • CHALET
  • COCHINSHIP
  • HUDCO*
  • IRCON
  • ITI
  • JYOTHYLAB
  • KALYANKJIL
  • KAYNES
  • MEDANTA
  • MRPL*
  • NBCC*
  • NLCINDIA
  • PCBL*
  • SJVN*
  • SOBHA
  • SUZLON
  • SWANENERGY
  • WELCORP

Entry:
HUDCO and PCBL make an entry.
MRPL, NBCC and SJVN cannot enter as there is no vacancy.

Exit:
ANGELONE and JINDALSAW exit.
BRIGADE, NAM-INDIA and SHYAMMETL stay within the top 25 and hence remain.

2 Likes
108
  1. Yeah Gulaq was able to grow, but then again it could be sheer luck only. The time period of 1 year is very small.
  2. Go after individual names if you’ve got time. I personally don’t see any sense investing in a stock for momentum with allocation of < 5%. I will pick highest 10 weightage stocks from the smallcase, that will replicate it the best
2 Likes
109

We will have to be very careful when we look at the weightages at any point of time.

If we allow the winners to run, then the weightages will progressively increase if rebalances do not involve equating weights once again.

Typically, during rebalance, the entry amounts are equal to the amounts being exited. Hence, there is always a possibility that the weightages are low at entry.

1 Like
110

These are not investments per se, these are momentum trades, positional trades, that will be exited in shorter periods of time. This is utilizing opportunities that can exist for extended periods of time or these could be intermittent that exist in consolidated time periods. No one knows when the rally stops, if liquidity is coming from overseas and from the local participants, the rally may very well continue. So even fundamental investors who are not convinced to buy citing the high valuations can try this approach towards taking smaller positions for shorter periods of time, which can supplement their investment PF. And, as these are shorter term, there could be quicker losses.

Some thoughts for myself too.

1 Like
111

Oh, even for momentum I hold the same point.
Stock with 5% weightage only needs to give you 20% return to get 1L. While stock with 1% weightage need to give 100% move. Why would I add a company from smallcase for which even the Smallcase guys have such small conviction to give 1% weightage.

1 Like
112

Agreed, but everytime they show us the current PF like a mutual fund. For winners yes it is important to keep weightage less than 10% if holding 10 stocks. Still don’t see sense in having stock with 1% weightage.

113

It depends on the methodology, the parameters, the system etc. While one can look at single stock’s performance, looking at the whole group over a period of time will give a better picture. It is about designing a system that performs, which consists of a group of stocks, whose selection is based on certain criteria, one of them could be allocation as per certain parameters.

Not invested in any smallcase currently, interested and learning about such systems.

114

Hi @visuarchie
Following the portfolio for a while, did you make any changes this week?

2 Likes
115

@Srisailesh_M_B Thanks for following the pf. I did not do any rebalance as the previous week was very short, just 3 trading days. Sorry, should have mentioned it. Next rebalance is planned coming Monday.

2 Likes
116

Update for entry on 5th Feb 2024

Based on ranking

  1. BSE
  2. NBCC
  3. SUZLON
  4. HUDCO
  5. BSOFT
  6. MEDANTA
  7. MRPL
  8. SWANENERGY
  9. SJVN
  10. NLCINDIA
  11. COCHINSHIP
  12. ITI
  13. MCX
  14. IRCON
  15. WELCORP
  16. KAYNES
  17. PCBL
  18. MOTILALOFS
  19. APARINDS
  20. IRB

Based on A → Z for easy tracking

  • APARINDS
  • BSE
  • BSOFT
  • COCHINSHIP
  • HUDCO
  • IRB
  • IRCON
  • ITI
  • KAYNES
  • MCX
  • MEDANTA
  • MOTILALOFS
  • MRPL
  • NBCC
  • NLCINDIA
  • PCBL
  • SJVN
  • SUZLON
  • SWANENERGY
  • WELCORP

Entry
MRPL, NBCC and SJVN make any entry.
APARINDS, IRB, MCX and MOTILALOFS cannot enter as there is no vacancy.

Exit:
BRIGADE, JYOTHYLAB and NAM-INDIA exit.
CHALET, KALYANKJIL, SHYAMMETL and SOBHA stay within the top 25 and hence remain.

5 Likes
117

Update for entry on 12th Feb 2024

Based on ranking

  1. BSE
  2. SUZLON
  3. NBCC
  4. BSOFT
  5. HUDCO
  6. MEDANTA
  7. MCX
  8. SJVN
  9. MRPL
  10. SWANENERGY
  11. OLECTRA
  12. COCHINSHIP
  13. KAYNES
  14. CHALET
  15. PCBL
  16. MOTILALOFS
  17. IRB
  18. ITI
  19. IRCON
  20. SOBHA

Based on A → Z for easy tracking

  • BSE
  • BSOFT
  • CHALET
  • COCHINSHIP
  • HUDCO
  • IRB*
  • IRCON
  • ITI
  • KAYNES
  • MCX*
  • MEDANTA
  • MOTILALOFS*
  • MRPL
  • NBCC
  • OLECTRA*
  • PCBL
  • SJVN
  • SOBHA
  • SUZLON
  • SWANENERGY

Entry
MCX makes an entry
IRB, MOTILALOFS and OLECTRA cannot enter as there is no vacancy.

Exit:
SHYAMMETL exits
KALYANKJIL, NLCINDIA and WELCORP stay within the top 25 and hence remain.

2 Likes
118

Update for entry on 19th Feb 2024

Based on ranking

  1. BSE
  2. SUZLON
  3. MRPL
  4. MEDANTA
  5. BSOFT
  6. NBCC
  7. SWANENERGY
  8. HUDCO
  9. CHALET
  10. OLECTRA
  11. MCX
  12. MOTILALOFS
  13. PCBL
  14. IRCON
  15. KALYANKJIL
  16. KAYNES
  17. SOBHA
  18. WELCORP
  19. ITI
  20. IRB

Based on A → Z for easy tracking

  • BSE
  • BSOFT
  • CHALET
  • HUDCO
  • IRB*
  • IRCON
  • ITI
  • KALYANKJIL
  • KAYNES
  • MCX
  • MEDANTA
  • MOTILALOFS*
  • MRPL
  • NBCC
  • OLECTRA*
  • PCBL
  • SOBHA
  • SUZLON
  • SWANENERGY
  • WELCORP

Entry:
IRB, MOTILALOFS and OLECTRA cannot enter as there is no vacancy.

Exit:
COCHINSHIP, NLCINDIA and SJVN stay within the top 25 and hence remain.

5 Likes
119

How are the returns? Are you publishing them somewhere?

1 Like
120

@Bansal I am not publishing them anywhere.

Returns continue to be good. Portfolio is currently doing an XIRR of 102% over 15 months.

7 Likes
121

Very nice.
Though i am invested in just one of the names(no.8) mentioned above, though with a different approach.
Love your approach and efforts you are putting into sharing them.

1 Like