Introducing Portfolio Yoga Fundamental Bets Portfolio

The antidote to Momentum if there is any, lies in the domain of Value investing. Momentum and Value are often seen as two sides of the same coin even though believers may think that the world is flat and there is only one side to it.

When it comes to building portfolios, though, Value and Momentum can be as different as chalk and cheese. One looks for stocks making new lows while another looks for stocks making new highs. Value investing requires in depth business analysis, while momentum is a heavily data driven approach.

At Portfolio Yoga, we believe that an investor need not be chained to one factor that is currently fancied. This is why we introduced the Quality Portfolio which looks at stock picking differently from the Momentum Approach with a much longer holding period.

Stocks that qualify for Quality for most part are already well known companies that have shown the  mettle for many years. On the other hand, there are stocks – stocks that may not be currently fancied for whatever reason but one with high potential. Lack of interest provides opportunities for the discerning investor who is willing to wait for the market to recognize its potential. 

With thousands of companies, searching for a few good companies is more like searching for a needle in a haystack especially since quantitative filters can only filter out only the really unreasonable leaving hundreds of others available for picking. To build a sensible portfolio, we need to drill it down to a couple of dozen stocks and this requires a lot more than just historical data.

Building Wealth | Building Relationships is not just our tagline but how we wish to live in reality. Building relationships is never easy but once built, good relationships can last a lifetime. Building Wealth on the other hand, it’s all about being with the right people.

With the launch of Portfolio Yoga Fundamental Bets portfolio, we are expanding our team by collaborating with people who have been in the world of fundamental investing for more than a decade.  

With their expertise and our experience, we hope to be able to deliver a portfolio that produces a decent reward for the risk taken. We hope you can join us in the journey we are about to begin.

Strategy 

The portfolio is designed for long term investors with a time horizon of two to five years. 

The criteria for inclusion of any stock into the portfolio will be based on businesses we understand and one we feel have a long runway for growth. We dislike companies with high debt ratios and would try to stay away from the same even if they seem to be available cheap. 

A pure value portfolio is one where the firm is being sold for less than its intrinsic value for any number of reasons. While finding such companies in India is not an issue, the issue always is the ability of the management to unlock such assets. As we have in multiple cases, even when such assets are unlocked, the retail shareholders may be left high and dry with the management deciding to use the funds based on their own rationale and reasons.

This portfolio hence is a combination of Value and Growth. Our Universe of stocks is across all market segments and hence will be multi-cap in approach. The portfolio currently holds nearly 38% of the capital in Cash and which shall be deployed as and when new opportunities are found.

The minimum capital we advise for those wishing to subscribe to the portfolio is Rupees Six Lakhs. The reason for the high commitment is to ensure that the fees you pay are inline with fees you get charged at Mutual Funds when going through the distributor mode. 

The portfolio stocks shall be in either Buy Mode, Hold Mode (wherein those who have bought can hold the same though new investments aren’t recommended) or Sell (either complete exit or partial exits based on each stocks individual situation).

Given that the market doesn’t wait for a weekend for opportunities to surface, additions may happen at any time during the week and shall be communicated via email. In future we are also contemplating using other tech tools to provide you with timely alerts on mobile and one that is not easy to miss.

Benchmarking: This portfolio would be benchmarked against Category Returns of “Value Oriented Funds”.

Want a sneak peak at the portfolio before you decide? Check out the sample here 

https://docs.google.com/spreadsheets/d/1P3a-ZaqDZntjt28JL0uaVW7DLQapztTuPHlqcXWKKpE/edit?usp=sharing

Do note that this is part of the real starting portfolio though changes in the real portfolio will not be reflected here. This is just a sheet to provide you with a clue on the kind of stocks we shall pick. 

The Fee for this portfolio has been set at Rs.12,000 (Rupees Twelve Thousand Only}. Link for the payment is available on the Philosophy & Services page.

Have questions, mail us or DM on Twitter.