#Portfolios carry innate positioning. Corrections are when positioning counts.

#Positioning depend on your style. #Value plays out distinctly. #Momentum has its own stamp. #Thematic plays to its own dynamics. Often, we follow a blend.

Your Blend counts. Watch it close. 1/7
Often, #Portfolios are constructed without a blend. They will be distinctly #Momentum. Or uniquely #Value. Or totally #Thematic .

Such portfolios may show beta that can shock and awe both ways.

#Positioning will held manage #beta better; It always fits to a market context. 2/7
Market context is dynamic. Interest rates, exchange rates, oil prices, political churn & technological change are all key drivers.

#Portfolios need to capture the dramatic shift in drivers. #Positioning must be aligned to emerging trends in drivers. Blend must capture them. 3/7
A portfolio’s #Positioning has to reflect the investor’s personality. Choices must align. Blend must have character.

As markets rise, #Portfolios lose track & get disconnected. Investor himself lets it happen. Often, this leads to most problems. Investor struggles to cope. 4/7
The walk back to a better shape has to start with #Positioning. #Portfolios must take stock. Past trends must be called out & stocks moved out ruthlessly. Monies freed must be carefully deployed to construct a new forward looking #Positioning. Rush won’t work. Take it slow. 5/7
Every portfolio suffers #Positioning flaws. In fact, professionally managed ones suffer greater flaws. Trend change catches them off guard. The worst kept secret is a PMS can’t quickly redraw its positioning without hurting returns. The blend change costs will hit home. 6/7
Retail investors can ill afford lethargy if #Positioning is wrong. But, we see problems at stock level. Shift focus swiftly to #portfolio level. Address it clinically & work diligently to create a futuristic #blend. Mix #Value & #Thematic futuristically. Avoid #Momentum NOW. 7/7

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Shyam Sekhar

Shyam Sekhar Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @shyamsek

Sep 29, 2018
Let me share my learnings at @ithoughtadviser. Firstly, I believe firmly that my primary role as an advisor is managing risk. Not maximising returns. My choice of the MF space was simply because i clearly saw the need existed in 2008. 1/10
#ManagingRisk
#ContrarianInvesting
MF's offered ease of scalability, management & ample liquidity. We could buy as much quantity at same valuation. MF's wide product choice outside of diversified & largecap funds favoured advisory alpha generation. 2/10 #ContrarianInvesting
#ManagingRisk
@ithoughtadviser
Generally, advisors let fund managers decide portfolio composition and risk management. @ithoughtadviser believed it was our responsibility to play a constant role. So, we brought fund research, client risk profiling, market opportunity & #ManagingRisk closer in our work. 3/10
Read 10 tweets
Aug 28, 2018
Improving quality of PF is a constant pursuit. Need Zealous effort to keep watch on own line up, order & weights.

As markets rise, the tendency to give this pursuit up takes over. Money comes easy. A loosening tendency evolves. Investing turns lazy. 1/5
#BeatingBenchmarks
Heavy fund inflows make a manager think less about returns and more about deployment. Too much cheese on his plate makes him less hungry.

He no more enjoys investing. Yet, his plate is always full.

He only finds ways to deploy. Returns become secondary. 2/5
#BeatingBenchmarks
For a while, returns happen by themselves even as rampant mirroring of PF's occurs.

So aping in buying gives near term returns too. Slowly, the entire herd move to graze in a small area.

That's when a Lion roars & moves to kill. Everybody freezes wet. 3/5
#BeatingBenchmarks
Read 5 tweets
Jul 16, 2018
"Are you beating the benchmark this year?"

Investors who usually want to beat the benchmark by miles are putting out this rather usual question.

#Benchmarktales

1/10
The first question to such investors.

Are you investing around the benchmark and hugging it?

Or are you investing far away from it?

Where you are investing counts. If you are into thematic or contrarian styles, then you are running your own race. 2/10

#Benchmarktales
If you are not looking at stocks moving the benchmark and investing far away from its prime movers, your returns will diverge rather than converge with benchmark returns. Contrarian investing typically works this way. #Benchmarktales

3/10
Read 10 tweets
Jul 8, 2018
What individual investors do with their money is irrelevant to most others. Especially true of micro caps & small caps.

These companies are very, very risky. Only few turn out to be big winners. Several fall by the wayside.

No matter who owns a stock, the biz must deliver.
The problem with us is we are too willing to invert the decision process by which we choose stocks. We must look at businesses & pick the best.

But, we choose an investor. Then we decide to buy every Biz he buys. We assume he can do no wrong. But the biz can go wrong. 2/n
When the business fails to deliver, it becomes the investor’s failure by extension. This is classic third party management of our decision making responsibilities.

If same people go for a toss, they may well say

Heads, I lost because of you.
Tails, you won because of me. 3/n
Read 5 tweets
Apr 21, 2018
Moving away from looking for multibaggers meant One doesn’t try to identify stocks offering rapid PE growth that will be riding on short term EPS growth. 1/5
#MultiBagger #ValueInvesting
The earnings velocity created by shortages, near term biz disruptions & temp dynamics are mostly unsustainable. Convincing the world they are structural is not an honourable deed. Nor reflects decency. Most momentum is surreptitiously built to fool ordinary men. #MultiBagger 2/5
Look at industries where momentum is sought to be built. They will be less understood. Carry huge risks of disease and environmental damage. Non descript promoters. Building momentum is no accident. It is to a design. To fool institutions & retail in one go. 3/5 #MultiBagger
Read 5 tweets
Mar 14, 2018
If a small investor, what can you do now? I will create and run this thread today. Hope you find it useful. 1/25
@shyamsek Firstly, take stock of what you own. List all your investments in one place. Rank them by size in descending order. 2/25
@shyamsek Within your portfolio, segment by size, holdings greater than 10%, 5% and 2%. Treat them as three segments. 3/25
Read 25 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(