For investors looking to invest in companies and funds that are focussed on disrupting the future.
Returns ($) - 83.28%
Returns (INR) - 110.42%
Volatility - 37.58%
Sharpe - 2.21
VaR - (1.9%)
This actively monitored and managed thesis seeks capital growth and diversification to the typical Indian portfolio by investing in equities and commodities focused on innovation. Innovation generates exponential capital returns as opposed to linear returns that some of the more traditional industries experience.
ShiftAltCap recognises that while innovation provides such high payoffs, the churn and interdependence of companies necessitates investing in a group of companies as opposed to stock picking. Hence we also
use ETFs that replicate the innovation themes driving the highest value for the world today, spread geographically and sectorally. In the spirit of investor protection, all ETFs / securities chosen, for the most part, run north of $500M.
Underlying companies have been screened for Quality of R&D; Return on Invested Capital; Cash Position; Momentum of umbrella ETF. Further the portfolio encompasses, companies / funds / commodities / REITs that are involved across the end to end value chain of innovation i.e. from Alphabet stock to Innovation focussed funds to Lithium batteries to data centre REITs. The Innovation Thesis' allocation rests on strong mathematical foundations developed by John Kelly (the famous Kelly’s Criterion) generating an asset mix optimal on the risk-reward scale whilst giving ample room for correction, hence protecting our investors.
A question facing every investor convinced on their strategy is "Should I buy today or wait till next week?": It is our firm belief that market timing is a fruitless exercise and we have seen this repeatedly, for this reason, ShiftAltCap recommends a quarterly SIP.
Thesis Value of Global Innovation
As of 31st August 2020
Top Holdings and Sectoral Distribution
The top holdings of this thesis are outlined below:
VanEck Semiconductors ETF (i.e. Taiwan Semiconductors, Intel, Nvidia, etc.)
ARK Innovation ETF (i.e. Tesla, Square, Roku, etc.)
Ares Capital Corporation