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Thursday, 25 June 2020

Introducing Hitpicks - our new technofunda advisory


It brings me great pleasure to bring to the fore an old friendship and collaboration between Hitesh Bhai (that's what I and most people I know call Hitesh Patel). 

He is the person who enthused me to learn technical analysis which opened the doors of quantitative investing. I also realized that blending technical and quantitative with fundamentals adds superpowers to regular BHP (buy-hold-pray) investing.

My own results improved significantly after meeting Hitesh Bhai. I also ventured into exploring other investing styles, which I think has helped tremendously in expanding my horizons.

The new offering - "Hitpicks" - is focused on technicals with a technofunda approach with a short-to-medium timeframe.

There may be some confusion for investors on which plan should they chose for a subscription. I have already received a few emails with an hour of announcing the new plan on twitter. So, here are a few pointers to help decide.

1. Intelsense Long Term Advisory is for those who are long term investors.

This is ideal for you if you have a time-horizon of a minimum of 5 years and are typically looking to invest for the next few decades. Here the main focus is compounding capital with comparatively lower risk in quality businesses. It is very well suited for retirement planning, monthly SIPs, goal-based investing for financial goals at least a decade away or wealth creation for the next generation. Transactions are infrequent and there may be months or quarters or even years (less likely, but possible) where we just sit and do nothing to our positions.

2. Quantamental is for style diversification, disciplined high risk-high return.

This is a great compliment to Intelsense Long Term advisory. You can think of taking a 10%-20% part of the portfolio in a strategy like this, which in the long run can generate serious outperformance. But, this is much more involved and hands-on approach and requires making transactions once a month. The risk for an investor also is higher as you would not really know a lot of details of the companies you are buying into. Also, since it invests into high growth, high momentum stocks, in a choppy market you can keep losing money. However, it can generate excellent returns in a trending bull market as shown by the backtested performance and also experienced by me since I have been investing in it. This strategy is also great for people who want to just invest in a product where human biases and mistakes are systematically reduced progressively.

3. Hitpicks is for short-to-medium term discretionary technofunda bets

This is basically meant for those who have a short-to-medium term time horizon. The core is technical analysis with an overlay of fundamentals, which basically means we will be looking only at fundamentally strong companies for technical chart patterns and breakouts. Transactions will be frequent. It requires a hands-on approach to the market.

4. Mix and match based on your preference

Based on your preference and requirement, you can choose what makes sense to you. Or if you feel that you want to apportion a part of your portfolio to each strategy then that is also not a bad idea. That is what I personally do. My personal approach is about a 70:20:10 split with the intention of moving to a 50:30:20 split over time.

5. All existing Intelsense and Quantamental subscribers will be eligible for a discounted subscription rate. Always.

Those who are already subscribers to any Intelsense family plan are automatically eligible for a discounted rate. It will be rolled out to existing subscribers directly. In fact, this will be available across the basket of plans. Any existing subscriber will get a discounted rate for any other plan.

6. All 3 plans are separate and complementary. You choose based on what you need.

I don't pick favourites among the 3 plans. They are complementary styles and complementary time horizons. So, a particular plan may not be suitable for all needs. But between the three, I think, we pretty much cover a large part of the equity investing spectrum. 

7. Bottomline is to provide honest, effective and good quality advice to retail investors.

Right from our initial ValuePickr days, we have been driven to participate in empowering the small investors. Even today, both Hitesh Bhai and I continue to spend hours every day on ValuePickr doing just that. And we get a lot more in return - in terms of great ideas, points we may not have thought of, scuttlebutt from across the country and so much more.

After having interacted with literally tens of thousands of retail investors in the few years, I have realised that there is a dire need for actionable advice which was honest and where you are not being "duped" into buying bad companies by fly-by-night advisors. 

The love and affection we have received and continue to receive from fellow members of ValuePickr and the investing community in general, remain the prime mover for us.

4 comments:

  1. Hit picks - how frequent will.the transactions be? Intraday or few weeks to few months...

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    Replies
    1. This are positional trades so no intraday.

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  2. Is Hitesh Bhai associated with you for all three plans?

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    Replies
    1. I do discuss with him from time to time on the long term picks, but not always. I am still trying to convince him about quants, but is a difficult job since he does so well himself in his own positional trades and long term investments :-)

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