Indian markets remained volatile in September. Weak global cues, a rapid rise in COVID-related cases, uncertainty around the stimulus package, as well as the upcoming US elections are some of the factors that pushed Nifty lower by over 1 percent.
Well, benchmark indices might have danced on both global and domestic tune in September but we have handpicked as many as 10 smallcases that gave positive returns or created alpha of up to 13 percent in the same period.
Smallcases are professionally managed baskets of stock/ETFs that are building blocks for a long term, diversified portfolio. Each smallcase reflects an idea, strategy or objective.
There are a plenty of factors that affect the direction of Sensex and Nifty in a specific period, but there was plenty of stock-specific action especially in the small & midcap space.
Smallcases are created by SEBI-registered professionals. Smallcases have brought a lot of flavour to investing as they are created across various strategies, market segments, sectors, and risk profiles.
Let’s find out which smallcases bucked the trend along with their investment methodology, and who they are managed by:
Estee Long Alpha Lite (Gear 4): Return 13.47%| Minimum Investment: Rs 70,000
Long Alpha is a directional strategy that aims to consistently outperform the benchmark equity index while maintaining low volatility.
It is a quantitatively-managed smallcase that implements a systematic rule-based trading model to remove human subjectivity. It is a multi-cap smallcase which is managed by Estee Advisors. Estee Long Alpha LITE (Gear 4) by Estee Advisors
IT Tracker: Return 11.7%| Minimum Investment: Rs 47,962
The global IT & ITeS market reached USD 1.2 trillion in 2016-17, while the global sourcing market reached USD 173-178 billion. India remained the world’s top sourcing destination in 2016-17 with a share of 55 percent.
This smallcase comprises IT & ITeS and online services companies to allow investors to efficiently track and invest in the information technology sector. It is a predominantly large cap smallcase which is managed by Windmill Capital. IT Tracker by Windmill Capital
Mi_ST_ATH: Return 9.95%| Minimum Investment Rs 102,342
Mi_ST_ATH is a concentrated momentum portfolio of up to 10 high volume stocks that are picked near their All-Time Highs from the NSE-listed universe. Stock selection based on Momentum ranking and nearness to their All-Time Highs.
Every week the portfolio is reviewed and stocks which do not hold up the momentum ranks are shelved while new ones enter.
At times when new momentum picks are not available the portfolio will sit in cash (in interest-bearing instruments like LIQUID BEES). It is a multicap smallcase which is managed by star manager Alok Jain, founder of Weekend Investing. Mi_ST_ATH by Weekend Investing
Emerging Dominators plus (ED+): Return 9.92%| Minimum Investment Rs 1,50,000
India now has the world’s largest share of young population that is earning and spending more than the earlier generations. With an increase in per capita GDP, there is a significant change in the consumption pattern of Indian consumers.
The smallcase handpicks 12 such companies that are already created a substantial market presence and are now geared to grow rapidly.
This objective of ED+ is to create a portfolio of multi-baggers from the small and mid-cap stocks and these 12 companies qualify to fit into our investment framework. The smallcase consist of small & midcaps and is managed by Piper Serica. Emerging Dominators plus (ED+) by Piper Serica
Estee Long Alpha LITE (Gear 3): Return 9.48%| Minimum Investment Rs 1,05,000
Long Alpha is a directional strategy that aims to consistently outperform the benchmark equity index while maintaining low volatility.
It is a quantitatively managed smallcase that implements a systematic rule-based trading model to remove human subjectivity. The strategy helps in identifying stocks using a combination of technical and fundamental factors.
The smallcase allocates capital to equities on basis of market valuations. The smallcase has a multicap theme which is managed by Estee Advisors. Estee Long Alpha LITE (Gear 3) by Estee Advisors
Indian Healthcare Momentum: Return 8.65| Minimum Investment Rs 30,368
This smallcase consists of the top 10 Indian Healthcare stocks that are ranked based on momentum and rebalanced monthly.
It is a concentrated portfolio that scores high on momentum factors based on the universe of Indian pharmaceutical, diagnostic, and hospital companies.
This smallcase has a multicap theme and is managed by Flameback Capital. Indian Health Care Momentum by Flameback Capital
Speciality Chemicals: Return 7.17%| Minimum Investment: Rs 48,532
Speciality chemicals are specific items that are used in low quantities for the production of high-value goods.
This smallcase comprises companies manufacturing speciality chemicals that are used in a wide range of industries like automobiles, pharma, textiles, food processing, agrochemicals, etc.
The smallcase has a multicap theme and is managed by Windmill Capital. Speciality Chemicals by Windmill Capital
Turtle Growth Mantra: Return 6.1%| Minimum Investment 1,85,036
This smallcase aims to invest in outstanding unicorn companies with a vision of 10x growth. A portfolio of upto 18 stocks is made following a bottom-up approach and growth investing strategy.
Liquid Money to be invested in Liquid Bees. There is no sector-specific investment approach. It has a multicap theme that is managed by Turtle Wealth Management. Turtle Growth Mantra by Turtle Wealth Management
Mi_MT_Allcap: Return 6.1%| Minimum Investment 1,82,152
Mi_MT_Allcap is a non-discretionary momentum portfolio run by weekendinvesting.com. This 20-stock portfolio follows the medium-term momentum trends among all listed NSE stocks above-market capitalization of Rs 1,000 crore.
At times when there is no opportunity for capital deployment, the strategy may sit in cash through the liquid ETFs like LIQUIDBEES. The re-balance of this portfolio is done every week.
It has a multicap theme and is managed by Alok Jain, a SEBI registered investment advisor. Mi_MT_Allcap by Weekend Investing
CANSLIM-esque: Return 5.88%| Minimum Investment Rs 41,850
CANSLIM is an investment model of specific criteria set out by William O’Neil, an American stockbroker and investor. CANSLIM model revolves around seven criteria - current earnings, annual earnings, the new factor, supply and demand, leader vs laggard, institutional ownership, and market direction. These criteria have been modified for the Indian stock markets.
This smallcase consists of companies that have recorded greater than 10% earnings per share growth over the previous 2 years and also have a high return on equity.
High EPS growth in tandem with high ROE indicates that the company is making money at a fast pace while managing capital efficiently. It is a multicap theme that is managed by Windmill Capital. CANSLIM-esque by Windmill Capital
(It is a partnered post)
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