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SmartCaps

Here’s introducing “Smartcaps” – Our crowd-sourced portfolio.

First a bunch of thanks to the most awesome group I have known: all of you on the slack groups. I think the level of conversation is top notch, focused and brilliant. There are so many ideas to build on, and so many trading and investing concepts and techniques we’ve learnt. A big round of applause!

In the magic, some of you suggested stocks that can be the great ones for tomorrow. Many are small-caps – so it’s very difficult to build into a position. Also there is very little institutional interest as the market cap of such companies is very low and promoter holding is heavy, so getting in with a chunk is difficult.

But we’d like to build this into a portfolio named Smartcaps.

As a side note: This is where you can beat a mutual fund. If a fund has about 100 investments and owns about 3,000 cr. then buying into a single stock requires them to hold at least Rs. 30 cr worth. Or even 15 cr. Or at least 10 cr. Otherwise it’s not worthwhile. For a stock that’s 100 cr. in market cap, this is a huge percentage! And if 75% is held by the promoter, just getting in will cost the fund a huge amount. So they wait until the company gets some size and then put their money in.

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