Ladies and Gentlemen, boys and girls. We are proud to announce the LAUNCH of Mystic Wealth value (MWV ) our Value based Model portfolio on smallcase.
As you know Smallcase is the seamless platform on which clients can update their portfolios with a single click of a button eliminating the execution hassles in replicating model portfolio.
Mystic Wealth value is a Discretionary portfolio managed and run by Dayanand Deshpande who is a SEBI registered RIA. The ideology behind MWV is to generate alpha by sniffing inefficiencies arising out of demergers and spinoffs. Model portfolio also has leeway to invest in other special situations or GARP (growth at reasonable price).
This portfolio is total Skin in the game. It is safe to assume that both Manish Dhawan and Dayanand Deshpande would have substantial holdings in their personal account.
Over the years, we have done rather well with this portfolio averaging 28.12% CAGR since 2014.
Some of the winners include Orient paper, Orient cement, FEL, Majesco, Intellect while some of the losers include the likes of Sintex, Arvind, maxvil etc
Since this is a Discretionary portfolio, there are no extensive back-tests available. The whole premise of M.W.V is to play out the documented inefficiency arising out of asymmetrical bets.
Please be advised that while portfolio wagers conservatively on each bet, this Model portfolio DOES not even attempt to cut down draw-downs. We are NOT competing with the INDEX. And while we have beaten it with a wide margin, we do not mind under-performing it for years altogether.
For example: Note: From April 2017 to current date, the return is a flat 3.15% (CAGR) . Like any other fund, majority of alpha was generated in 2013–14 and 2016–2017.
Please find attached the performance graph since 2014
Originally published at https://mysticwealth.in on September 12, 2019.