Mon, Jul 01, 2013 at 14:31
Standard Chartered is betting big on midcap and smallcap companies for long term investment on following reasons.
1: Under-researched stocks = Higher returns. For similar improvement in RoEs, under-researched stocks have generated better returns. The Indian small/mid-cap (SMID) space has also produced the maximum number of 10 baggers over the past decade in the region.
2: It’s not just beta. Post global financial crisis, correlations of the BSE mid-cap index vs the Nifty has been falling while RoE dispersion within the SMID space has magnified3, making stock selection more important.
3: Alpha generation. Macro-economic cycles can be played via sector rotation strategies, but stock selection can be a dominant performance driver between cyclical turns4.
So, check out the stocks:
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