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Niteen S Dharmawat, CFA Profile picture
@niteen_india
Aug 30, 2020 • 8 tweets • 3 min read • Read on X
Yesterday did an analysis of 10 Large Cap MFs.


Someone said Mid Caps perform better. Hmmm

Here is t summary of 10 MFs from Mid Cap sector based on AUMs.

Btw, I saw large caps like HDFC Bank, ICICI Bank in top holdings... hmm MidCap

Enjoy...

1/n
Total AUM of 10 these MFs: 58,359Crs (AUM: Asset Under Management, size of the funds)
Top 25 stocks: Ranging from ~60-80% holding (Average 66%)

2/n
Return against S&P BSE 150 MidCap
1 yr: 2 cud barely outperform. 1 out of 8 had a negative return
3 yr: 4 outperformed (2 could barely do). Rest handsomely beaten-down by Index. Worst 2 had negative returns
5 yr: Only 3 could outperform (2 could barely)
7 yr: 6 outperformed

3/n
Here is the real fun:
The AUM Growth vs the number of opportunities available remains a common issue
Funds were chasing the same set of companies with a growing AUMs at a pace higher than the historical average.



4/n
If all these 10 funds were just one fund, what would have been their top 25 holdings? Here it is. This will be ~35-40% of total AUM or 55-60% of Top holdings.
Balkrishna Industries
Ipca Laboratories
Voltas
Tata Consumer Prod
Coromandel Int
Supreme Ind
Cholamandalam Invest

5/n
Trent
Ramco Cements
Aarti Industries
Atul
PI Industries
Max Financial Services
Divi's Lab
Bharat Electronics
City Union Bank
Whirlpool
Crompton Greaves Consumer Electricals
Hexaware Tech
Torrent Pharma
Exide Ind
Sundram Fasteners
AIA Engineering
Apollo Hospitals
Mphasis

6/n
Consensus kills? Common holdings:

7 Funds: Voltas, Tata Cons Prod, Coromandel Int
6: Ramco Cement, Balkrishna Ind,
5: Supreme Ind, PI Ind, CUB, Apollo Hos, Cholamandalam Invest, Max Fin Services, Ipca
4: HDFC Bank, Sanofi, Trent, Bharat Elect, Atul, Crompton GCE, Whirlpool

7/n
Wish to still say these, hmm?

#mutualfundsahihai
#Mutualfund Investing is for the Long term
#Mutualfund Investments are subject to market risks (I wish to add the size of the market too)
#MutualFundSahiHai

Data source:
MFs: @ValueResearch

8/8

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More from @niteen_india

Niteen S Dharmawat, CFA Profile picture
Feb 11
There are incidences that leave mark on your life.

This incidence is of 90s when huge upside in steel came. A young family friend with a good family background decided to set up a steel plant. It was such times that attracts everyone investors and entrepreneurs both alike. The start was great and end very sad.
They were in the wholesale business of सरिया steel roads in Loha Bazaar of Indore. Very well to do family. The elder son in his 30s thought of taking advantage of steel teji. There were many who were doing similar things around. Everything appeared positive and rosy.
He took debt to set up a mini steel plant. Of course, it was beyond his means. By the time plant was ready, teji in steel vanished. What he spent was not recoverable. He took a lot of money from the market. Young MBA with dreams took all kind of risks with good intentions.
Read 8 tweets
Niteen S Dharmawat, CFA Profile picture
Aug 22, 2022
I hear so many people running behind EV bandwagon. I see it no different from what happened with "smart education" theme of late 2000.

Here are 5 case studies from the USA of EV cos filing bankruptcies. In India they don't file bankruptcies, they simply vanish in thin air.
June 15, 2022
Electric Last Mile Solutions Inc. filed for Chapter 7 bankruptcy in Delaware, making it the first of the electric-vehicle startups that merged with special purpose acquisition companies to go out of business amid the recent market slump.
bloomberg.com/news/articles/…
Jun 13, 2022
EV maker Electric Last Mile Solutions files for bankruptcy
The move comes after the Troy, Michigan-based company disclosed a probe by the U.S. Securities and Exchange Commission and withdrew all its previously issued business outlook in Mar.

auto.economictimes.indiatimes.com/news/passenger…
Read 7 tweets
Niteen S Dharmawat, CFA Profile picture
Aug 29, 2021
Scary situation in IT recruitment. The kind of salary hikes happening with multiple offers is not heard of before. Met/spoke to Project Managers, Recruiters, CEOs this weekend.
One ex a 7yr exp dtop engg was getting 11Lac now got an offer of 35Lac from MNC IT services co.
Impact?
In another case, one eng was drawing 5Lac given an offer of 11Lac+10%bonus, just 2days before joining he said he has an offer of 18Lac. His offer revised to 15+10%bonus with a promise to stability. He called after 3 days, he has another offer of 23Lac.
In more interesting case. One PM said he interviewed 200 candidates for a very good technical position in last 6 months gave 30 offers but not a single candidate joined. He said in normal circumstances almost all would have joined
Read 4 tweets
Niteen S Dharmawat, CFA Profile picture
Jul 23, 2021
A small story.

Recall an interaction 5yrs back with my Marwadi Kirana-wala (grocery shop owner). This is 50+yr old shop, 80% wholesale supplying to hotels/restaurants. Had good cash flow, used to invest mostly in properties/land.

1/n
Though not formally educated, he is very sharp, speaks "English" and knows his Biz. I told him to consider stks/MFs too. He laughed at me, said it is satta bazaar and narrated the examples of few of his known people who lost.
2/n
Come 2021, went to meet him 2days bk. He was not there. His 27yr old son Nilesh was manning the shop. He knew me too but didn't know abt my interaction with his Dad 5yr bk. Also, he didn't know abt my stk adventures.
3/n
Read 10 tweets
Niteen S Dharmawat, CFA Profile picture
Jul 1, 2021
How different market participants react when they got this book "How to solve 50% of your problems?"

- Momentum traders: will buy more than 2 books to solve more than 100% problems
- Fundamental analyst: will buy 1 book and read it two times to solve 100% of the problems

1/n
-Technical analyst: 50% is a resistance level and 100% a support level
- Growth investor: will buy only if problems growing more than 25% for 3 years
- Value investor: will buy if no one is able to solve their problems

2/n
- Cigar butt investor: No one's problem is my problem
- New bakras: someone should tell me how to buy problems
- Fence seaters: let problems come below 50%, I will buy

3/n
Read 6 tweets
Niteen S Dharmawat, CFA Profile picture
Jun 17, 2021
Some random observations from the ARs and Concalls

The Hotel ind is struggling to survive due to the ongoing pandemic. The best comes when there is a crisis at the door. Observing several initiatives and measures by the cos which would have never been considered otherwise.
1/n
Just to sight few examples from the AR of FY'21 of a hotel major (these are common across other players too). They initiated several measures both at cost and revenue front.
2/n
They launched an online app to deliver 5 start hotel food (which worked quite well). They took major cost reduction and rationalization initiatives. These initiatives were impossible considering the culture and history of this group.

Let me list some cost savings examples
3/n
Read 7 tweets

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