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GLOBAL INVESTMENT THESeS

Global Public Market investment instruments that focus on investing in themes over and above individual stocks with the goal to:

  • Enable much better returns compared to leading indices

  • Reduced risk via focussed metrics such as Sharpe Ratio, Max Drawdown and Volatility

  • Investing across the entire value chain of the theme i.e. commodities, debt funds, stocks and ETFs

Why Global Investing?

Global Investing has proven to have the below advantages in contrast to portfolios that are heavily India focussed:

  1. Value For Money: Indian Index is considerably more expensive than that of US. Investors have fewer choices: Sensex P/E is 22% higher; P/BV is 20% lower vs. DJIA

  2. Lower Risk:  Standard deviation for Indian Index is higher vs US: <1% over 3 years; 3% over 10 years; coupled with FX benefit of 5.07% over last 5 years and low correlation between the two markets (0.36) making diversification real

  3. Investing In The Future: Indian Index has a stronger tilt towards traditional industries rather than innovative companies.

    1. Top 5 Sensex stocks: RIL, HDFC, HDFC Bank, Infosys, ICICI

    2. Top 5 DJIA stocks: Apple, MSFT, JPMC, Visa, J&J

  4. Greater IPO Opportunities: Little Sensex activity in FY19: $1.5 Bn raised in India vs $32 Bn raised in US Vs. 2018: India saw a 66% decline in funds raised vs. no change in US

Key Characteristics

Key characteristics of ShiftAltCap's Global Investment Theses are outlined below

  • US and global markets focus: invest in global industry leaders, at competitive prices and with low correlation to India equities

  • Theme based selection: invest in the entire value chain of theme selection filter rather than the most popular choice

  • Open architecture: open-ended structures with large-size low-cost listed financial products & ETFs as vehicles to ensure high liquidity, access to multiple stocks and low transaction cost

  • Low entry ticket: start with as little as $1,000 and increase as you go along

  • Trusted execution: 1-click trades with a credible partner trusted by India's leading financial institution at low costs; leveraging the robust US laws & governance ecosystem providing protection to your investments

Opportunity 1: Global Innovation Thesis

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.

Themes

  • Private Credit: 20.4%

  • Commodities (Precious Metals): 16%

  • Semiconductors: 11.8%

  • Industrial Innovation: 11.1%

  • Data Center REITs: 10%

  • Bio Technology: 8.7%

  • China Technology: 6.9%

  • Technology: 6.6%

  • AI & Robotics: 6.3%

  • Renewable Energy: 1%

Top Holdings

  • VanEck Semiconductors ETF (i.e. Taiwan Semiconductors, Intel, Nvidia, etc.)

  • ARK Innovation ETF (i.e. Tesla, Square, Roku, etc.)

  • Ares Capital Corporation

  • Equinix Inc.

  • Hercules Capital

Metrics (3 years)

  • Returns ($) - 81.19%

  • Returns (INR) - 103.63%

  • Volatility - 38.05%

  • Sharpe - 2.13

  • VaR - (1.95%)

Opportunity 2: War & Peace Thesis

This thesis invests in those assets – equities, commodities, REITs, and Debt– that are in use whether the economy is in a boom or a bust. In doing so, it provides capital growth and preservation for the conservative investor, without compromising on returns. This actively monitored and managed thesis recommends investments in consumer staples; equity in robust and cash-rich companies like Microsoft and Google; utilities; healthcare; and Data Centres Real Estate.

Themes

  • Technology: 17.4%

  • Data Centre Real Estate: 16.8%

  • Fixed Income Corporate: 16.3%

  • Fixed Income Government: 15.7%

  • Healthcare Equipment / Supply: 8.7%

  • Healthcare: 6.9%

  • Utilities: 6.3%

  • Bio Technology: 5.8%

Top Holdings

  • Utilities Sector SPDR ETF

  • Consumer Staples Select Sector SPDR ETF

  • Alphabet Inc.

  • Microsoft

  • Invesco Water Resources ETF

  • Equinix Inc.

Metrics (3 years)

  • Returns ($) - 56.76%

  • Returns (INR) - 76.18%

  • Volatility - 36.14%

  • Sharpe - 1.56

  • VaR - (2.06%)

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