Learn from the big investors in the market through the Big Whales Report, a quarterly publication by Capitalmind.
A Big Whale is an Individual Investor with substantial holdings in Indian companies. The Individual may own shares in the name of his firm and/ or relatives etc. We consolidate their holdings under each of these different accounts (except companies where they hold shares as Promoter Group).
The report provides you a short background of the Investor, the sectoral holdings, changes in the investment activity and the detailed holding in each stock for the period ending June, 2016.
We have identified 19 such Individuals who have made their name from the Indian Capital Markets would including the Big Bull Badshah Rakesh Jhunjhunwala, and India’s largest philanthropist Azim Hasham Premji who holds a significant stakes through Premji Invest and has also invested in the start-up world.
While our previous 4 reports have only included the 19 Individual Investors who were classified as Big Whales, we went ahead and added a couple of others. The newly added investors are not individuals but 12 Investment Firms, Private Equity Firms among others.
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Here are some of the numbers crunched by Data Monster:
- Not one Big Whale we track has holdings in a stock forming part of the Telecom sector
- The holdings of the Big Whales fell from Rs. 129,763 crore to Rs. 122,931 crore, a drop of about 7,000 cr.
- Stocks which have the highest number of Big Whales (4) were Strides Shasun held by Government of Singapore, Prof Shivanand Mankekar & Family, Satpal Khattar and Steadview Capital and Tata Motors DVR held by Amansa Capital, Abu Dhabi Investment Authority, Government of Singapore and Rakesh Jhunjhunwala.
- The Sector with the largest investment by Big Whales were Consumer Discretionary, Industrials and Financials with the least being Utilities.
New positions and Exits by Sector:
- In terms of new entries, Amansa Capital made the highest new entries with 3 investments i.e. PI Industries, Trent and Zensar Technologies while the sector that witnessed the highest new investments were Consumer Discretionary (7), Industrials (6) followed by Materials (4).
- In terms of exits, Abu Dhabi Investment Authority made the highest exits with 5 investments i.e. Cipla, Dr. Reddy’s Laboratories, Housing Development Finance Corporation, Reliance Industries and Shriram Transport Finance Company. This was followed by Anil Kumar Goel & Family and Aberdeen Asset Management with 4 exits each. Industrials witnessed the highest exits (12) followed by Consumer Discretionary (5) and Materials (3).
This is how the Big Whales weighed each sector during Q1-2017 compared to Q1-2016.
This is how it looked from the valuation front:
These shareholding patterns are about six weeks old and things do change over time. But since the Big Whales have such large positions, the very fact that they are adding or removing stocks from their portfolios can give you an indication of what they favor or do not. Typically such individuals have enough wealth to not need to exit stocks for liquidity – it’s usually their need to exit a stock or sector that drives sales. A similar argument can be made for entries as well.
This quarter we see a small change in profile as large investors seem to have pared their bets. The exit of large individual investors could be seen as a sign that there isn’t that much value left in the market, and even as markets reach new highs, these investors aren’t likely to be the ones buying.
Disclosure: We may have advised some of the stocks as part of our premium portfolio’s and have market positions in them. Please assume we are biased.
Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.