To create a significant alpha, diff strategies can be adopted at different cycle of market. In Bull market, I have adopted investment & trading in same stock and strategy worked very well.
Out of total corpus, while i have selected stocks with allocation of ~3-5% in each one and I kept ~25% of corpus as cash which I wanted to allocate to 3-4 very high conviction stocks with short term view of 2-4 months in two/three tranches (to reduce the probability of loss in any unforeseen event). If I get 30-40% or more returns during this short time from these select stocks, I book the profit in such a way that remaining quantity is around ~5% allocation to portfolio (after this run up, here onwards my expectation is nominal growth of 20-25% per annum). Booked profit can again be deployed another 3-4 stocks high conviction stocks on rotational basis which are part of thematic flows and part of our investment portfolio.
I could implement above since May’23 in BSE, Jupiter wagon, Picadilly Agro, Prestige Estates, Pitti Engineering, KIMS Hospitals, Shakti Pumps and Peral Global. Presently, I am invested in PDS, Shalby Hospital, CDSL and KFIN Tech under this strategy.
Disclaimer: Its just a thought sharing and no way of any sort of recommendation
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