Contra Strategy - takes a different view
Picking ‘overlooked’ or ‘undiscovered’ stocks-albeit with sound fundamentals. These companies exhibit strong balance sheet and sustainable business models, but may be underperforming the markets for a brief period due to various reasons, which are temporary in nature.
Invest in companies, which are out-of-favour with the overall market but at the same time have unrecognized value. Identify these out-of-favour stocks and go against the tide, look for that first mover advantage in these scrips, in case of a turnaround.
Buy ignored companies and then wait for market to discover them, which then results in their share prices going up, thus benefiting by going against the tide.
Sell companies when Re-rating target is ac
The strategy aims to invest in fundamentally sound companies that can benefit from changes in a company’s valuation which reflects a significant change in the markets view of the company over an horizon of three years.
The Strategy focuses on investing in stocks that can benefit from growth in earnings, re-rating of business or higher valuation of assets.
The objective is to increase return rather than reduce risk for Investors.
- Follows the principle to pick best ideas rather than diversification
- Concentrated Strategy Structure of less than 10 stocks
- Investment Horizon: Medium to Long term
- Investment Approach: Follows a “Buy and hold” philosophy with low to medium churn
Bottom - up stock selection approach
Buy and Hold philosophy - Low portfolio churn
Cash: 0 - 100%;
Stocks: 0 - 100%;
Risk: Medium to High
Exit load: Applicable in the 1st year
Benchmark: BSE 200
Companies whose earnings are likely to do better than market expectations
Companies benefiting from fundamental changes
New management team or new product launch
Cost-cutting initiatives or improved pricing
Takeovers / Mergers or Acquisitions
Companies benefiting from changes in business environment
Consolidation or reduction in industry capacity leading to improved pricing
Shift in consumption patterns or demographic trends
Out of favour companies
Fundamentally sound companies that have underperformed due to a various reasons, which are temporary in nature.
Companies with lower valuation as compared to sector or peers or market
For investors who seek for high returns with high risk
Medium to Long Term - 2 to 3 years