HNI Prime-Growth at a Fair Price Asset Allocation
Windmill Capital
High growth-focussed investing, with systematic protection when markets turn
5Y CAGR
21.01%
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Daily Change
Today's change in this smallcase is
7Y CAGR
CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of launch. Only live data is considered to calculate the CAGR. Thus, this smallcase has given returns on an average every year since Apr 4, 2016
High Volatility
Stock prices move up and down on a daily basis, resulting in fluctuating investment value. High volatility indicates high fluctuation is expected in the investment made in this smallcase
About the smallcase
Reasonably valued companies witnessing earnings growth with dynamic allocation to gold and debt for downside protection.
- Growth companies often reinvest their earnings into numerous opportunities instead of paying dividends. Their rapid business expansion and escalating earnings typically result in higher valuations.
- However, prudent investment dictates a balanced approach to pricing. Regardless of a company's excellence, it is crucial to avoid overpaying; this is especially true for growth companies, where keeping valuations in check is important.
- The equity portion is a carefully curated selection of high-growth companies available at reasonable valuations, with higher ROCE and healthy profit margins.
- Markets, however, go through prolonged downturns where even good businesses see sharp price declines. The smallcase addresses this by dynamically allocating to gold and debt when market signals weaken, preserving capital when equity exposure is unwarranted.
- The result: participation in growing companies on the upside, with meaningful protection on the downside. A smoother wealth creation journey without the need to time the market.
Methodology
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Methodology
universe
All publicly traded companies on the National Stock Exchange of India, covering 90% market capitalization, are included in the universe
research
- At Windmill Capital, our team cultivates investment philosophies rooted in cutting-edge academic research and insightful white papers. These resources lay the groundwork for a comprehensive understanding of market dynamics, risk management, and optimal return strategies. Subsequently, our sophisticated testing mechanisms allow us to create portfolios that are both theoretically robust and empirically validated.
- To further refine our models, we harness advanced mathematical, statistical, and analytical methods. These may include optimization algorithms that balance risk and return, as well as statistical analyses to uncover factor regimes and correlations. Such techniques enhance our stock selection process and portfolio weighting decisions, ensuring precision and effectiveness.
- This asset allocation version of the "Growth at a Fair Price" smallcase combines equity in growth companies at justifiable valuations with gold and cash to reduce risk, offering smoother, risk-adjusted returns and protection during market downturns.
- The switch between pure equity and alternative assets is based on our proprietary technical model, which assesses momentum across Nifty Largecap, Midcap, and Smallcap indices. If weighted average price strength is weak or fading, the model moves to gold and debt; if strong, it switches to the pure equity version of the smallcase.
stockScreening
- Stocks/ETFs qualifying the above mentioned research criteria are selected for further analysis
- Proprietary liquidity filters are applied to remove ill-liquid stocks/ETFs from this list
- A special check is further applied to remove stocks, where a significant part of the promoter holdings are pledged
- Stocks/ETFs are further removed on the basis of red flags such as their presence in ASM/GSM list of the exchanges, deep negative news or sentiment etc
weighting
This final list of selected stocks making part of the portfolio is equally weighted
rebalance
This smallcase will be rebalanced on an as-needed basis
About the Manager
At the glance
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