Screening & Creating an Investable Pool
We have a watch list of ~1,000 stocks from where we filter and create a shortlist of around ~500 stocks using our proprietary research tools and processes and finally recommend investment in ~60 stocks
Use Fundamental parameters on regular basis to add/remove stocks to/from Shortlist. We also use technical analysis as a supporting input
Utilise other inputs -> Sell side Research, On the Ground noise, track Institutional Interest and Industry/company conferences
Stock Selection
Of the shortlisted pool, we select an investable universe of 60 stocks based on a mix of quantitative and qualitative parameters
Understanding the business of the company, drivers, financials and long term growth prospects vis-à-vis opportunity.
Management capability, vision and strategy
Portfolio Construction & Review
Fund Manager allocates weight based on fund mandate and relative risk/reward at current market price.
Ranking and weightage of stocks to be visited frequently for rebalancing of portfolio – this would be carried atleast once in a quarter
Review Investment thesis on quarterly basis and during changes in business environment
Exit Strategy
Evaluate weightage of stocks and reduce weights when price runs up ahead of fundamentals
Adverse development in company
Overall environment turns bearish and hence switch to higher cash holding