Portfolio Disclosure- Dec 2017

Portfolio Disclosure

See below a list of stocks held in the portfolio.

Porfolio of Stocks
Largest Holdings as on Dec 18, 2017

My current portfolio is extremely diversified, but the top holdings (which constitute approx 80% of the total portfolio) is disclosed here.

Pls note that the total return here does not include dividends. In a few stocks-NMDC, AkzoNobel and HindZinc, accounting for dividends would have changed the return considerably.

In a few stocks, the purchase value is reduced by the profit booked. This is true of CanFin Homes, Shilpa Medicare, Bajaj Finserve and KRBL. This is why the return seems absurd. In any case, each of the stocks has returned around 10-15X, even if I don’t account for profits booked.

Trading Performance November 2017

Trading Performance November 2017

Trading Performance in November 2017 was on the muted side. The last three months have not been great for my trading performance, which has actually been negative, and substantially so, even though markets have been positive. Over the year, returns are a fabulous 150% on my invested capital. These large fluctuations in trading returns are a function of the trading systems I use. In fact, in November, trading the stock markets has not been that bad, but commodities have given horrendous returns, which has led to a low performance overall.

I am now trying to introduce options into the mix, and in November, I had a profitable month trading options. I have still not deployed substantial capital for options trading, but I will over a period of time.

Here is a table of my trading performance(as well as investment performance) for the month of Nov 2017, and for longer periods:

Trading Performance
Table showing my trading performance(as well as investment performance) compared to different benchmarks

Investment Performance Nov 2017

Investment Performance Nov 2017

November was not a great month for markets. The Nifty actually declined slightly, while the broader indices were in the green, but just so. Portfolio investment  performance was similarly muted, with the portfolio having returned just 2.77%. It has been more than a year since I started keeping track, and the overall returns for the year till Nov 2017 have been 37.66%. It seems optically great till one considers that Nov 2016 had the demonetization even and subsequent sharp fall. So comparisions are bound to be favorable. Also, one has to consider that the SBI Small and Midcap Fund returned 61.12% during the same period. So good portfolio performance, but not great.

One swallow does not make a summer, and so also 1 year does not represent a lifetime of investment returns. It gives only a snapshot of lifetime performance, and it does not say anything about the risks taken to derive the investment returns. Nor does it say anything about the future course of returns. However, as we keep up this exercise of tabulating returns, month after month, for several years, hopefully, we will be able to derive some conclusions.

In the meantime, I am sticking to my general investment style. Low churn, buy low valuations, catch falling knives when the company’s survival is not at risk. Keep a trend towards concentration.

What can say about a year’s returns? My portfolio outperformed all the indices I track, as well as the HDFC Top 200 Fund. My portfolio also outperformed the two PMS schemes by a considerable margin. And the portfolio grossly underperformed the SBI Small and Midcap Fund. It has been a great run for small and midcap stocks. However, we will see how these perform as time passes.

Here is a graph of the returns:
Investment Returns
Investment performance of my portfolio, as well as those of several benchmarks

A table representing the same data is part of the next post, which will talk about trading returns.