Aggressive Portfolio

Investment Philosophy

The primary objective of this portfolio is to seek considerable accumulation of wealth over the investment time horizon. The investors who are willing to accept fair amount of volatility in the capital and fully understand the emotional and monetary impacts these could have on the value of the investment are the right prospect for Hedge Aggressive Portfolio.
Hedge Aggressive Portfolio endeavors to deliver superior performance of investment over a long period through extensive technical research and fundamental backing. The portfolio constitutes equities, which have a historical track record of outperformance compared to other investment avenues like bank deposits, bonds, real estate, gold, commodities, etc. We believe that investing in a properly managed business through equity shares can deliver returns of around 20-30% per annum in the long term, compared to returns of between 10% – 18% for other modes of investment.

In keeping with this philosophy, we have designed this portfolio, on some basic principles which are summarized below,

  • To invest in stocks which have fundamentally sound business and a good technical track record
  • Investing in companies which have excellent growth prospects and are consequently cheaper in terms of valuation.
  • Ensuring maximum returns while at the same time minimizing risk; portfolios generally consist of equity protected and hedged using derivatives.
  • Minimizing opportunity cost incurred by idle cash through efficient cash management.

Investment Strategy

The portfolio weightage will constitute 60-70% in equities which are diverse in nature. The stocks are invested in different weightages and allotted on the basis of market movement and potential future movements. For example, equities which have high beta will be included when retracement of the index is imminent and vice versa. We realize that some short term gains may be lost if the portfolio is held with a long term objective only and thus a moderate churn ratio of investment is implemented to capture short term gains. In order to maintain such a churn ratio a percentage amount of cash is kept. This cash and derivatives also serve the purpose of tactically hedging the portfolio against any losses.

Investment Process

Our investment process follows our investment philosophy closely; we first evaluate the fundamental factors of the particular stock, then identify the technical trend exhibited and finally we make sure that the company has a diversified product mix which make it a stable and long term growth prospect. We also initiate an in-depth analysis which include,

  • Company Financials
  • Valuation
  • Financial Ratios
  • Cash Flow Generation
  • Net Profit Margins
  • Debt to Equity Ratio
  • Sector analysis and future prospects using both fundamentals and technical indicators

Portfolio Construction

  • We believe that a portfolio of 10-15 stock with 60%-70% weight age in equity will adequately create a perfect diversification.
  • The portfolio’s top 10 holdings carries 50% of the total investment weight-age,
  • Any shifts in investment and weights are done based on market movements and any opportunity cost on non-deployed cash will be nullified through mutual fund and debt fund exposure.

 

Who can Invest

  • Resident Indians
  • Non Resident Indians
  • Corporate Institutions

    • Minimum Investment: Rs.Five Lakhs.
    Mode of Corpus: Introduced by way of Cash only

Our PMS Service offers various features such as:

  • 24 x 7 Online Access
  • Performance Reports accessible via our secure website
  • Transaction & Holding Statements
  • Trial Balance & Other Financial Reports

To talk to a Hedge Wealth Management Specialist, please email us at wms@HedgeEquities.com or call +91 9349 0975 04