post every week or share scanner
@Ascendant @visuarchie @ChaitanyaC
Wasnt FY23 a good year for equity ?
with my limited understanding of accounting, i presume smallcase guys whose offerings,as advertised, are giving outstanding returns.
How smallcase guys made losses ? > Smallcase spends Rs 176 Cr to earn Rs 31 Cr in FY23 
or is it because of things on blanacesheet which i cant comprehend ?
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A typical Indian is always away from subscription model. Bogus returns? okay some have signed up now. But past returns in no way promises future numbers to be same or closer - especially the previous green energy and PSU cases.
We are in FY24, and the article was about FY23. Were smallcases’ returns good in FY23? FY24 must have been good for them. Also, some smallcases must have been performing relatively better compared to others across all time periods but others may have failed to deliver in FY23, so the overall performance is small. And, some smallcases may not have participated in the sectors which were going up, due to their methodologies on which the smallcases are built. And if there is no dearth of funds, particularly from US, cash can be burnt for years.
I think, there isn’t any difference between MFs and smallcases when it comes to non-performing periods, discretion or quant, manual or automated, some periods are dull, as the overall market is not conducive, and if selling is happening, they go under.
Just some views, invested in smallcases before, not subscribed now.
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@LarryWink My understanding is that the performance cited here is about the platform that runs Smallcases, and not the performance of smallcases it hosts.
Their areas of income should be subscription and commission from the Investment Managers. I don’t think it is connected to the AUMs managed by the managers.
They have recently converted some of their free smallcases to paid ones. I guess the results will be visible in the coming years.
I suppose they continue to develop the smallcase platform; hence most of the expenses are due to manpower (software development).
FY23 was good for investors, but “smallcase” platform might show better results going forward.
This is how I interpret the results.
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hello sir
i m justed started momentum investing.
i want to know how you rebalance your PF?
what i do.
sort the stock which gave more returns than smallcap 250 index of 3 months.
then select top 15 stock which is nearest to its 52 week high . unlike you if the stock is within the top 25 stock i dont sell my positions.
PLEASE SUGGEST ME.
@kuldeep_agarwal Hello Kuldeep
There are many ways to follow Momentum investing. You are following what is comfortable for you. There is nothing wrong.
There are some differences between the way we do.
- My look back period is 1 year and 6 months. Your look back period is 3 months. In all the literature that I have seen, the optimum period is between 6m and 1 year.
- I don’t look at returns in comparison to Index. I just go for absolute returns and sort them. I look at both 6 months and 1 year and give equal weightage for both.
- To ensure that volatility is not affecting the portfolio, I divide the returns by Standard Deviation and then sort them.
In my portfolio I have 20 stocks against your 15 stocks. Again, nothing wrong. But having more stocks reduces the volatility of the overall pf.
You are using two factors - 3m returns and stocks near 52w high. See what benefit you get with this additional factor (52w high). Normally, more factors you have, reduces the overall returns of the pf.
These are some of my observations.
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Update for entry on 26th Feb 2024
Based on ranking
- BSE
- MEDANTA
- MRPL
- SUZLON
- NBCC
- HUDCO
- TATAINVEST
- BSOFT
- SWANENERGY
- MCX
- CHALET
- WELCORP
- OLECTRA
- IRCON
- SOBHA
- KALYANKJIL
- COCHINSHIP
- ITI
- IRB
- MOTILALOFS
Based on A → Z for easy tracking
- BSE
- BSOFT
- CHALET
- COCHINSHIP
- HUDCO
- IRB*
- IRCON
- ITI
- KALYANKJIL
- MCX
- MEDANTA
- MOTILALOFS*
- MRPL
- NBCC
- OLECTRA*
- SOBHA
- SUZLON
- SWANENERGY
- TATAINVEST*
- WELCORP
Entry:
OLECTRA and TATAINVEST make an entry.
IRB and MOTILALOFS cannot enter as there is not vacancy.
Exit:
KAYNES and NLCINDIA exit.
PCBL and SJVN stay within the top 25 and hence remain.
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This is a very helpful thread
@visuarchie - two qs:
- How are you adjusting for stock split / bonus etc (e.g., Cochin Shipyard)
- Went through your excel - you use the opening price of the day - any reason why?
Apologies if my qs are too simplistic - new to momentum investing
Hello @vkediaonline, thanks.
-
I do this manually. Once the corporate action is effected, I change the values in the sheet appropriately. For example, if there is a 1:1 bonus, I divide the pre-record date by 2 manually.
-
Google Finance is supposed to pull the closing data everyday. I learnt that Google Finance handles date for different exchanges differently. Therefore, to get the correct value, I had to ask for specified date - 1.
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thanks this is super helpful
On 1 - wow that’s a lot of effort to do manually. Should be a better method as manual may miss. However this is excellent
One thing - have you tried variations of this strategy to see the variation in results?
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@visuarchie hii, Could you please share the current percent allocation of the funds within these 20 stocks, either here or in excel. I want to enter but not sure about how do allocate funds.
How come your Momentum strategy never picked Anant Raj till now.
I like stocks like this, quite easy to hold and ride.
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@harshitk3172 If you are starting, please start with equal allocation of your capital to all the stocks. In this case, as we are holding 20 stocks, you can please for 5% in each.
After that you should let your winner ride. The new entrants will have the valuation of the stocks exiting. Hence, over a period of time, there will be differences in allocation within the portfolio.
@Ascendant Anant Raj is not part of the Smallcap 250 index; it is part of the Microcap 250 index. In fact, I am doing a pf using Microcap 250 index also. Anant Raj is part of that portfolio. It is ranked 10th in my working sheet among the 250 stocks. I have had a good run in that stock till now.
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@vkediaonline Actually it is not a big effort once you know which stocks have undergone Corporate action. Once you have this info, modifying the sheet is very easy. The difficulty is in knowing which ones are changing. If the stocks that are seeing corporate action are part of the pf, we can catch it very easily. Otherwise, it is very difficult. We could end up with some stocks not finding a place in the portfolio due to this reason also.
You could get clean data from some sources; but this will mean money to be paid for this. This is not a commercial venture for me and hence, I am happy with me doing the work.
On variations, I think I have mentioned it previously. The few things I was considering
a. Add a 3 month look back period also and find the composite rank considering 3, 6m and 12m scores.
b. Changing the weightage between 6m and 12m. Currently, I am doing 50:50. This could be changed to 60:40 or 75:25 etc to give more weightage to recent price action. However, this requires lot of simulation effort to see if this makes any difference in the pf. I do not have that much resource. I might do this sometime in the future.
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do you have similar momentum approach to microcap as well ? why i am asking, as i’ve few micros i would like to study recent exits and entrants.
do you follow similar momentum investment for micros ? or u have different approach ?
do you have a thread on it ? in case you are open to share for larger audience, i’d like to study recent entrant/exits at micros !
@LarryWink Yes, I follow the same approach for the Microcap pf also. This is a 25 stock pf and exit happens when the stock falls below 30 (unlike 20 and 25 for smallcap pf).
I started both at the same time. Fortunately, both have done well for me and given an XIRR of 100%+.
I do not have a thread on it, but can start one if people are interested. In any case, this is not a recommendation and I am just sharing my study.
I will have a thread up for Microcaps later this evening.
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