Thread by @jimmypudussery

YouTube stream of the Annual @PPFAS Unitholders' Meeting. The Unitholders' Meeting starts at 4pm IST

#PPFASagm #PPFAS

The YouTube channel for @PPFAS
youtube.com/user/ppfasltd/

#PPFASagm #PPFAS

Pre-reading 🤓 for the #PPFASagm by @RajeevThakkar

amc.ppfas.com/about-us/lette…

Investors who are not able to attend, can ask questions here. Just use #ppfasagm at the end of your question. We will answer them in the last 30 minutes of Q&A session.

https://twitter.com/PPFAS/status/1068745062731853824

Direct YouTube Link to watch the livestream.


#ppfasagm #ppfas

Prediction: There is a non-zero chance that the meeting starts with "The Law of the Farm" 🤓

Yup! 😀😀

https://twitter.com/jimmypudussery/status/1068813164823760896

Tenets
1. Common Sense Approach
2. Discipline
3. Patience
-@npparikh6

Goal
Preservation of Capital, and earn a reasonable rate of return. Optimize returns for long term, rather than maximize return for the short term.
-@npparikh6
#ppfasagm

Win by not losing !
#PPFASAGM

Skin in the Game!

7.92% of the Fund AUM owned by Insiders.

#PPFASAGM

ELSS Fund expected "sometime" in 2019.

OPINION: Excellent! Lot of folks will now consider it..

#PPFASAGM

Overview of the Liquid Fund. Launched in May 2018.
amc.ppfas.com/schemes/parag-…
#PPFASAGM

@RajeevThakkar (CIO) takes the stage.

#PPFASAGM

Over to the in-house unitholders' questions.

#PPFASAGM

"@oraunak takes the questions on stocks that have fallen." Wry sense of humour by @RajeevThakkar

#PPFASAGM

.@RajeevThakkar 's take on #facebook. A deviation from talking on specific stocks.

#PPFASAGM

.@RajeevThakkar 's take on Amazon.

#PPFASAGM

@PPFAS continuing to deploy to cash. The inflow continues to be good..

.@RajeevThakkar presents his take on FMCG.

.@RajeevThakkar presents his take on FMCG (Indian and Global).

"We (@PPFAS ) are a rounding-off error for other Mutual Fund Houses."
- .@RajeevThakkar again with his sense of humour.

@PPFAS #PPFASAGM

. @PPFAS does not plan to invest on the SME Exchange
- @RajeevThakkar

#PPFASAGM

.@RajeevThakkar and @oraunak with their take on Pharma (and to an extent, on IPCA)

#PPFASAGM

.@oraunak expounding on IPCA Labs.

#PPFASAGM

... and on Sun Pharma, and Dr. Reddy's.

#PPFASAGM

.@RajeevThakkar alluding to the recent Macquarie report on Sun Pharma.
link: economictimes.indiatimes.com/markets/stocks…

#PPFASAGM

.@RajeevThakkar alluding to #Alphabet and the moonshot projects.

.@RajeevThakkar 's take on how many money managers for @PPFAS. Comparison with #BRK.

Mention of the "Key Man Risk". Blind spots pointed out when ideas hammered out wit others...

The research team of @PPFAS.

https://twitter.com/PPFAS/status/1068824158736400384

"No take on broad indices (BSE, NIFTY)".
- @RajeevThakkar

#ppfasagm

.@RajeevThakkar expounding on @PPFAS 's philosphy on active investing, index-hugging, and Index investing.

#ppfasagm

.@RajeevThakkar confirming that YESBANK is not in holdings, instead is an arbitrage position. Earning on the spread between spot and futures prices. No exposure

#ppfasagm

.@oraunak elaborating on "specificality chemicals" sector...

#PPFASAGM

"Short answer. No conviction yet to invest on "specialty chemicals" sector. "
-@RajeevThakkar .

#PPFASAGM

Theme of the Season.. NBFCs 😀

"Indirect exposure to only Bajaj Finance through Bajaj Holdings, and Maharashtra Scooters. "
-@RajeevThakkar
#PPFASAGM

"Private Banks have more advantages vis-a-vis NBFCs. Private banks can raise capital through CASA. "
-@RajeevThakkar
#PPFASAGM

"Insurance companies being closely tracked. But none at good valuations at this time"
-@RajeevThakkar
#PPFASAGM

.@oraunak expounding on MPHASIS. Continue to hold in @PPFAS fund.
#PPFASAGM

"Like HDFCBANK more than HDFC. Nothing against HDFC; a well run company. "
-@RajeevThakkar
#PPFASAGM

"Not presently in companies that need strictly only future bets to pan out.. Not interesting in OLA, UBER, NETFLIX etc."
-@RajeevThakkar
#PPFASAGM

Cautious on the Consumption space. HT @AaratiKrishnan mentioned on her article of superheroes in every bull market.

thehindubusinessline.com/opinion/column…

-@RajeevThakkar
#PPFASAGM

.@RajeevThakkar mentions the logic on choosing stocks for arbitrage positions.
#PPFASAGM

"Hesitant on stocks listed in China and Russia. Prefer companies that have annual reports, and general reporting in English. For now, not being adventurous. Only North America, West Europe, and developed Asia at this time."
-@RajeevThakkar
#PPFASAGM

"Housing and Infra sector. Some companies have spotty governance. Not too many value bets."

-@RajeevThakkar
#PPFASAGM

“Obvious prospects for physical growth in a business do not translate into obvious profits for investors.”
— Benjamin Graham (The Intelligent Investor).

re-quoted by
-@RajeevThakkar
#PPFASAGM

"Affordable housing could be sub-prime borrowing.."
-@RajeevThakkar
#PPFASAGM

MY OPINION: This is a profound statement. This is some expert level second order thinking:

Additional reading: fs.blog/2016/04/second…

"Volatility is a feature, not a bug... If we had a conversation a few months ago, the crude oil price would be a major concern. Now, not so concerned. "
-@RajeevThakkar
#PPFASAGM

Looks like the thread broke!

https://twitter.com/jimmypudussery/status/1068846529811607553

https://twitter.com/jimmypudussery/status/1068845845330579456

"Bio-Tech Life Sciences Industry too difficult to understand. Either hits or misses. Even promoters may not know outcomes. eg. Theranos. More of a VC bet."
-@RajeevThakkar
#PPFASAGM

My opinion: Theranos was more of an outright fraud. Cannot be considered..

"Indirect exposure to Bio Tech and Life Sciences through Alphabet (through the moon-shot projects). "
-@RajeevThakkar
#PPFASAGM

Questions from the Web!

Rationale on holding Bajaj Holdings and Maharashtra Scooters
-@RajeevThakkar
#PPFASAGM

Possibility of "value unlocking" in Bajaj Holdings and Maharashtra Scooters. Not too much counting on it..

Price paid by IBM for Red Hat. Too high a valuation for Red Hat? Being watched.

-@oraunak
#PPFASAGM

Update on Mahindra Holidays.

-@RajeevThakkar
#PPFASAGM

.@RajeevThakkar alludes to the YouTube video on Mahindra Holidays.

Electric Cars...

#PPFASAGM

The Tony Seba video...

#PPFASAGM

Next... International/Overseas stocks... Rationale of hedging clarified by .@RajeevThakkar.

85% international stocks hedged for, with currency futures. 4% yield per annum is returns on hedging.
#PPFASAGM .

#LiquidFunds.

Insta-redemption being evaluated. Could be possible in the future. insta-redemption, health cards being considered. Not feasible at the current AUM levels.
-@RajeevThakkar
#PPFASAGM

#PPFASAGM

Management quality one of the first qualifiers when shortlisting companies. Promoter governance is also one of the qualifiers.
-@oraunak
#PPFASAGM

Filtering shortlist for companies/sectors.

Coverage Universe: 750 companies in India and internationally.
Reasonable tracking of about 350 companies.

No key sectors chosen,

-@oraunak
#PPFASAGM

No hard and fast rules that any specific company from any sector would not be considered.
-@RajeevThakkar
#PPFASAGM

.@RajeevThakkar expounds on Indraprastha Gas, and Balkrishna Industries.

No advantange ADR vis-a-vis international stocks. Custody operations convenience. Cost convenience.
-@RajeevThakkar
#PPFASAGM

"Voting record on stocks held. Disclosure required under SEBI. Should be under Statutory Disclosures on the website. "
-@RajeevThakkar
#PPFASAGM

Yes, it is under Statutory Disclosures.
Direct Link: amc.ppfas.com/exercise-of-vo…

On the question whether the proposed ELSS (starting in 2019) replicate the present mutual fund:
"International stocks CANNOT be part of ELSS."
@RajeevThakkar
#PPFASAGM

On proposed ELSS:
"Expect the Indian stocks would have overlap between the two funds. Also since ELSS expected to be smaller AUM, possibililty of including smaller shares as well."
@RajeevThakkar
#PPFASAGM

"Presently ELSS framework is a work-in-progress. Contours being finalised.
Target launch is 2019. But could be launched in the next FINANCIAL year."

@RajeevThakkar
#PPFASAGM

That's all the questions. And .@RajeevThakkar patiently answered all the questions.

And that's a wrap from my end as well! On my tweets on this year's @PPFAS Unitholders' meeting.

Hope you liked it!