Shyam Sekhar Profile picture
Sep 29, 2018 10 tweets 6 min read Twitter logo Read on Twitter
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
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
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
We had our fair share of cynics. "How can you do what fund managers can't?". We let our work speak. Early in 2009, we called financials the next market leading theme. We played themed MFs till January 2018. Timely entry, #PositionSizing, patience & exit gave #AdvisoryAlpha 4/10
It was not about just one scheme or theme. A holistic approach of fund choices, forward looking fund research & measured decisions helped. We did MF investing very differently. FMCG, midcap, pharma, tech- we were open to everything.
#ManagingRisk stayed our constant focus. 5/10
We saw #Innovation as the key. But, MF's wanted advisors to do their bidding. There was a clear disconnect. We broke free by becoming an #RIA The entry of direct was a dramatic & tectonic shift. In Sept 2017, we moved on to only advise clients under direct option. 6/10
In a cost centric industry, advise must be clearly differentiated. Afterall, customers constantly judge. We use #ManagingRisk as the differentiator. Be it advising investing in tech & pharma in 2017-18 or advising exit in financials & midcaps in early 2018, we stay ahead. 7/10
Over a decade, our model has worked well, rationalised costs, improved process and stuck to forward looking fund research as the prime driver.

We don't make tall claims on returns. But, our belief that sound process leads to consistent performance is well established. 8/10
10 years is a good time to prove a model. Our clients helped us establish that clearly.

#Returns remain a function of how we advise on #ManagingRisk . We zealously keep our Clients ahead of risk. #Returns remain an outcome. 9/10
The future will be very challenging. @ithoughtadviser must constantly improve fund research processes,hold balanced macro & micro understanding & constantly help clients stay ahead of risk. Our gratitude to those who believed in us will always be our driver. 10/10

• • •

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!


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

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
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
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
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.


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

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

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
Jun 1, 2018
#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
Read 7 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!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!