What’s Keeping us busy.

Unlocking Alpha: A Journey through Trend Following and Special Situations Investing

We started with MWV:
Managed by Dayanand Deshpande, MWV takes a sharply analytical approach, uncovering mispriced opportunities primarily arising from corporate actions such as Demergers, Growth at Reasonable Price (GARP), and strategic management changes. MWV thrives on recognizing value before the broader market.

Introduced MWM:

MWM is a robust 20-stock trend-following portfolio, thoughtfully developed by Manish Dhawan. This strategy systematically rides market trends, capturing strong upward momentum in equities, ensuring consistent alpha generation.

Performance Since 2017:
Since their inception in 2017, both MWM and MWV portfolios have demonstrated stellar performance, comfortably beating benchmarks and showcasing their strategic robustness.

(Equity Curves Chart for MWM and MWV since 2017)

The Magic of Mixing (50:50):
When blended equally (50:50) and rebalanced monthly, the combined portfolio offers investors a smoother and steadier journey. This blended strategy not only maintains high returns but significantly reduces volatility and drawdowns (19.65%).

Enhancing with Momentum — The AATrend Strategy:
To push the boundaries further, we integrated a momentum overlay by calculating the six-month momentum score for each strategy monthly. Allocations dynamically shift, investing 70% in the higher-ranked portfolio and 30% in the lower-ranked one. This adaptive momentum approach (AATrend) significantly boosted returns and effectively managed risk.(18.5% max DD)

We also explored models around equity Curve Trading — A Strategic Gamechanger:
Taking it a notch higher, the concept of equity curve trading was introduced to our 50:50 portfolio and also experimented on each strategy individually. This approach involved shifting to cash whenever the equity curve fell below its trend following overlay. This is still work in progress and is anyways not for the weak of heart!! (due to decision fatigue)

MMG instead of MWM:

MMG our 30 stock portfolio with 30% allocated to gold provides yet another cushion to the investors creating even more smoother equity curves (14% max DD) and takes away the need of taking the cash call.

This comprehensive analysis provides crystal-clear insights into the robust performance and enhanced risk management delivered by strategic diversification and momentum-based asset allocation. Key is not to create highest return products which fail spectacularly in bad days, but to build a steady compounder which allows you to stay put.

PS. This is just academic discourse, we do not have any active products or subscriptions to offer.