(Continued)
Also had a few sells in the quarter:
-
Exited ICICI Lombard: Misjudged the cycle here and ended up buying at the top of the earnings cycle. No change in underlying thesis. Its just that better opportunities were available. End of the day I expect ~20% earnings growth here over the next decade. I could get that with ICICI Bank and HDFC Bank as well at half the valuation. Look forward to owning this again at some point. I think booked about a 15% loss here exiting at ~1220.
-
Exited PSU Bank ETF: trade largely played out; when people start talking about underwriting discipline at PSU Banks and sustainability of earnings is the time to exit. I felt most of the re rating was behind us and the risk reward quite unfavourable to keep holding these.
-
Started exiting Delta Corp: Poor Q3 results + weak discretionary outlook coupled with existential threat to the business with the GST issue. Enough to take money off the table in my opinion.
-
Started selling Arvind Fashions. Recent channel checks indicated very weak sales momentum post Diwali. This will put a dent in the managements margin recovery program as well. At the same time, I had other capital deployment opportunities.
-
China allocation is being ramped up almost every day.
Subscribe To Our Free Newsletter |