Technical Traders Club is now - The Agnostic Portfolio
Recently we have been seeing a lot of focus on either the Momentum Portfolio a bunch of stocks on a set of conditions, Trading System for Index or Stock Trades, Deep Value or Growth Investing, Can slim or various styles. There are proponents of each styles and with strong beliefs.
For us the idea is to not constrain ourselves with a single or couple of styles or maxims like – Smallcaps are Risky, Pharma/FMCG is defensive , Market only pays for Quality ,Momentum is the only way or Deep Value is the only way Chors will remain Chors or Chor bane Mor ( I phrased this one etc. We believe there is no single right way to investing or trading. One needs to be open and continue to learn.
Our style of investing/trading is to evolve, adapt and keep learning and try being agnostic to investing strategies or styles or frameworks or smallcaps/largecaps/midcaps etc and be discretionary in selection as well as allocation.
In simpler words the Agnostic Portfolio = “Whatever Works” to help us make good returns without losing a lot of money in the interim drawdowns.
So that’s where the Agnostic Portfolio strategy comes in place of our Technical Traders Club and makes it better and easily replicable. The thematic reports / market views will continue as before.
The Agnostic Portfolio
In Technical Traders Club we have been having mostly looking at almost equal allocations or at times a little more allocation to a few stocks at times and it was pre-dominantly based on technical and at times themes and some investment picks. We now make it a better structure with the below strategy.
The Agnostic Portfolio strategy is to run a portfolio with 10-25 stocks where the focus would be on a mix of technical trades, thematic trades, Deep Value, Growth Investing, Canslim depending on the market conditions and opportunities available.
Ideally we would like to be 20-40% towards fundamental and value driven ideas, 20-40% towards technical/thematic trades and rest in cash or on concentrated bets which will entirely depend on our assessment of market conditions and opportunities. Above is just a guideline which can change in different times.
The motive here is to look for risk-reward ideas and try to look for an absolute return over a period time and not try to hug a benchmark.
At times the churn could be high and at times there would be absolutely no action for months in it. We may even use Cash as a big Component or Shorting Index or Short Stocks as a Hedge at times or some Option Strategies. The new structure makes it easily replicable for clients as well as tracking the portfolio will be easier.
We do not have a target in mind for the returns but the ideal or minimum return is to look at compounding capital at 15-20% or higher with lower drawdowns.
We will be re-aligning the existing open recommendations of Technical Traders Club into The Agnostic Portfolio when we start the new portfolio on April 10th.
We think right now and over the next few months is a good time to increase the equity allocation as an investor/trader. We suggest investing fresh money over the next couple of weeks or progressively in this strategy.
We will be starting the portfolio from 10th April onwards.
The subscription is open only till 15th April and the next window for subscription would be next quarter so that the Model Agnostic Portfolio Performance is almost similar to the actual Client Performance.
Frequently Asked Questions
1) What will be the mode of communication?
The Agnostic Portfolio Updates will be sent via E-Mail and Whatsapp.
2) Is the subscription annually or Half Yearly.
The Subscription is annually.
3) What will the average holding period of the stock?
The average holding period could vary a lot across the portfolio with some being for few weeks and some even for a year. Also now that the STCG and LTCG tax difference is not large the holding periods do not really make a big difference.
4) Will there be a research report or Technical Chart with the Stock Recommendation.
We may at times send a small brief on the recommended stock or a Technical Chart but a detailed report will be sent only for Thematic Reports and Market View.
5) Will there by a target mentioned or updates sent for it?
The Exit Updates or Re-Aligning of Portfolio and other updates will be sent via e-mail or whatsapp.
6) What will be a Maximum Allocation to a Single Stock?
The maximum allocation to a single stock may not be more than 15% and not more than 30% to a single sector.
7) What is the minimum capital required?
Given that our charges are around 25k per annum and we believe the advisory charges should not be more than 2-2.5%. So minimum capital required is 10 lakhs and preferably higher.
8) Will there be any follow up after 1 year if I do not renew?
There will be no follow-up if the service is not renewed.
Bank Account for Payments
Account Holders Name - Nooresh Merani
Account No - 06661530002851
IFSC Code - HDFC0000019
Branch - Seven Bunglows Branch
MMID - 9240905
Mobile Number - 9819225396
Annual = Rs 25960 ( Rs 22000 + Rs 3960( 18% GST ) )
( Do not ask for discounts. We did not increase prices this year !! )