BOBCAPS TRIUMPH EQUITY TRADING STRATEGY

INDIA GDP – THE $5 TRILLION DREAM

AIM TO DOUBLE

1.92.0

2.1

2.3

2.72.8

3.1

3.4

3.8

4.3

5.0

0

1

2

3

4

5

6

0

5,000

10,000

15,000

20,000

25,000

GDP ( trillion $) Nifty Levels

2014

2024

2019

Source: ET

India has set it’s sight on 2x GDP growth by 2024….

Is your portfolio positioned to beat the same?

2Actual Estimated

GDP Growth rate – 8% GDP Growth rate – 11.5%

INDIVIDUALS UNDER-PERFORM INSTITUTIONS

LOSERS vs WINNERS

Source: ET

15

30

-4.3

-19.3

60

25

34.4

19.4

61

28

48.3

33.3

Stock gaining in value Stock losing in value Average returns Alpha over BSE 500

Retail favourite stocks Other stocks Instituitutional favourite stocks

Institutional Investors: Markets Biggest Winners

❖ Institutions’ superior stock selection results in higher gains ❖ Retailers realize more number of losses than gains

❖ Negative average returns borne by retailers due to multiple inefficiencies ❖ Retailer’s under-perform benchmark, while Institutions enjoy 30%+ alpha

OBSERVATIONS

3

THINGS YOU MAY FIND IN YOUR PORTFOLIO

OVER-DIVERSIFIED

Diluting Gains

EMOTIONAL BIASES

Conflict between

Greed & Fear

NO TIMELY TRACKING

Good gone Bad

Bad gone Worse

SKEWED FOCUS

Noise Based Multi

Bagger over Potential

CAGR

POOR ALLOCATION

Non-Quality over

Quality Stocks

VALUE TRAP

Valuation over

Value Creation

Investing in stocks just

because they seem cheap / available at cheap prices

Investment in riskier stocks are unevenly

higher

Too many stocks in the

portfolio reduces

contribution of individual

stocks

OBSERVATIONS

Fear of booking

losses, and greed for

early / riding profits results in poor exits

Lack of active monitoring,

leads to a decomposing

portfolio

Focusing on noise-based

multi-baggers, induces

higher risk into portfolio

COMMON MISTAKES BY INDIVIDUAL INVESTORS

4

WHAT TO BUY ?? <----> WHEN TO BUY ??

OLD-AGE QUESTIONS

BOBCAPS TRIUMPH (Equity Trading Strategy)

NEW-AGE SOLUTION

5

BOBCAPS TRIUMPH PROCESS

FOCUSED APPROACH

Universe Composition

(Quality Universe + Nifty 500)

Technical Filter

Identifying Sector Theme

Timing through Technicals

BOBCAPS TRIUMPH

DISTILLING DIVERSFICATION

Over-diversifying = Lower Return contributionsIncrease in stocks count reduces individual contribution to the portfolio

Portfolio concentration = Increased Return contributionOut-performance of few stocks compensates for underperformance of others

DIVERSIFICATION DISSOLVES GAINS

CONCENTRATION ‘SKIN IN THE GAME’

DIVERSIFICATION DLUTES

CONCENTRATION COMPOUNDS

DIVERSIFICATION PRESERVES WEALTH

CONCENTRATION CREATES WEALTH

DIV

ERSI

FIC

ATI

ON

D

ILEM

MA

Focused Equity Trading Strategy

6

BOBCAPS TRIUMPH PORTFOLIO

OUR EQUITY TRADING STRATEGY

BOBCAPS Triumph is an actively-focused equity trading strategy of ~15 shortlisted high conviction stock ideas using Technical Analysis, within the top

100 stocks held by Mutual Funds. Triumph features disciplined entry and exit into quality stocks, with efforts focused on absolute performance.

Focused equity strategy of ~15 high

conviction stocks, hand-picked across

market-caps, having Large-Caps bias

Re-alignment of portfolio will be done as per changing market trends

Tactful timing via Technical Analysis for disciplined entry and

exit within universe stocks respecting

trends

Top 100 stocks, held by the Mutual Fund industry, covering over 70% of equity AUM

QUALITY STOCK UNIVERSE

TECHNICAL APPROACH

FOCUSED STRATEGY

ACTIVE MONITORING

INVESTMENT OBJECTIVE

INVESTMENT PHILOSOPHY

7

BOBCAPS TRIUMPH UNIVERSE

COVERAGE DEEP-DIVE

80%-100%

QUALITYUNIVERSE

Large Cap67%

Mid Cap33%

0%-20%NIFTY

500

Large Cap20%

Mid Cap29%

Small Cap52%

35%

15%12% 11%

6% 4% 4%3% 2% 2%

0%

10%

20%

30%

40%

23%18%

15%11% 9% 8% 6% 5% 4%

1%

0%

10%

20%

30%

40%Quality Universe Nifty 500

STOCK ALLOCATION & MARKET-CAP BREAK-DOWN

SECTOR BREAK-DOWN

Universe Universe

Allocation Allocation

8

OUR TECHNICAL APPROACH

OUR FORTE

RESPECT THE TREND

SECTOR THEME

AIMING FOR WINNERS

RISK : REWARD

COGNITIVE OVER

EMOTIONAL

Find Value within GROWTH stocks

Following the “Trend is your friend” principle

Identifying superior sectors for finding quality stocks

Disciplined entry and exit, buffering emotional positions

Secret to successful investing is knowing your risk

9

PAST PERFORMANCE

HIGH CONVICTION TECHNICAL IDEAS

Its not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong

Disciplined approach resulting in favourable profits

“It’s the conviction that matters most

while investing”

Note: Stocks highlighted are over a span of two plus years

10

13

20

99

50

22

0

20

40

60

80

100

120

Loss more than 8% Loss 5%-8% Loss 3%-5% Profit 3%-5% Profit 5%-8% Profit more than 8%

Disciplined approach resulting in favourable profits

“It’s the conviction that matters most

while investing”

BOBCAPS TRIUMPH FEATURES

KEY INFORMATION

Investment Universe ❖ 80% - 100% From Quality Universe ❖ 0% - 20% From Nifty 500

Investment Approach Technical Analysis

Investment Style High-conviction Delivery-based Ideas, with Large-Cap bias

Investment Universe ReviewingQuarterly Basis

(As and when there is change in Top 100 stock constituents within Quality universe)

Number Of Stocks Up To 15 stocks

Risk Profile Equity-Oriented

Defining Market Capitalization (as per AMFI) ❖ Large Cap: 1st–100th ❖ Mid Cap: 101st –250th❖ Small Cap : 251st Onwards

Annual Subscription Fees (excl. taxes) Rs. 4,000 /-*

11*This is an Early-bird offer! Discounted benefits are for First 100 clients only!

12

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