Stoic Talks

S02E10 | Conversations with Value Investing Maverick - Rajeev Thakkar by Stoic Investment Managers

Anish Teli, a veteran in the Indian equity markets, has carved a unique niche through his firm, QED Capital Advisors LLP. With a belief system rooted in 'Quod Erat Demonstrandum' or ‘which is what had to be proven’, Teli's firm is a testament to creating effective investment strategies driven by quant-based asset management principles​​. QED's investment philosophy is structured around a rule-based approach, adapting to market dynamics by blending quantitative analytics with human expertise. This ensures investments are safeguarded against risks while aligning with clients' investment goals​​. Moreover, the firm adopts a satellite approach, combining the best of active and passive investment strategies, focusing on factor investing that includes Value, Momentum, Quality, etc​​. Periodical rebalancing and overcoming behavioural gaps like herding, anchoring bias, confirmation bias, and disposition effect are crucial elements of QED's strategy. These methods help in correcting pricing inefficiencies and irrational behaviours, narrowing the gap between potential and actual investor achievements​​​​. Delving deeper into QED's strategies, three distinct types emerge AlphaBets, Index Alpha, and Core Equity. AlphaBets consists of actively managed equities, chosen based on strict selection parameters, focusing on wealth creation while avoiding behavioural biases​​. Index Alpha, on the other hand, is a passively managed fund designed for long-term wealth generation, catering to specific investment horizons​​. Core Equity combines low volatility, momentum, and value/quality in a systematic manner, aiming to generate long-term capital growth from an actively managed portfolio of equities​​. In essence, QED's approach, under Teli's leadership, embodies discipline and consistency, crucial for wealth generation. The firm's portfolio management services ensure a systematic allocation across different strategies, combining growth and risk mitigation, to help clients achieve their financial goals​​. In conclusion, Anish Teli's journey in stock market and factor investing, as explored in the Stoic Talks podcast, presents a compelling narrative of strategic investment management, driven by a blend of quantitative analysis, disciplined approaches, and a deep understanding of market dynamics. We wholeheartedly thank DSP Mutual Fund for collaborating with us for this particular episode of Stoic Talks. Podcast Record Date: 01.11.2023

Ravi Dharamshi stands as a beacon in the investment landscape, with a career that speaks volumes about his expertise and acumen. With over two decades of experience in the Indian stock market, his journey is nothing short of inspiring. Beginning his professional investment journey under the mentorship of the ace investor, Rakesh Jhunjhunwala, Ravi fondly recalls the invaluable lessons he imbibed during those formative years. The period from 2003 to 2007, which he spent with Jhunjhunwala, was marked by significant growth in the stock market, bolstering Ravi's confidence in his investment choices. Ravi's association with the equity markets is deeply rooted in his family legacy. His father, a broker who began as a sub-broker in the late 1970s, played a pivotal role in shaping Ravi's understanding of the stock market. It was during his management degree in the US that Ravi's passion for the equity market truly ignited. Reading the Berkshire Hathaway newsletters and other investment classics, he realized that the equity market was his true calling. In 2009, Ravi transformed the research firm, ValueQuest, into a portfolio management service (PMS), obtaining the PMS license in 2010. Today, ValueQuest Investment Advisors, a SEBI-registered portfolio management company, manages assets for HNI and Institutions. The firm's ethos revolves around fairness, transparency, trust, and proactiveness, reflecting Ravi's own values. Ravi's investment philosophy is underpinned by a commitment to equities. He believes in having "skin in the game," ensuring that his investments align with those of his clients. His investment choices, whether in listed or unlisted equities, are driven by rigorous research and a deep understanding of market dynamics. https://valuequest.in/ Beyond his professional achievements, Ravi is a sports enthusiast, particularly passionate about cricket. In conclusion, Ravi Dharamshi's journey in the investment world is a testament to his dedication, expertise, and ability to seize opportunities. His story serves as an inspiration for budding investors and underscores the importance of continuous learning, passion, and commitment in the world of investments. We wholeheartedly thank DSP Mutual Fund for collaborating with us for this particular episode of Stoic Talks. Podcast Record Date: 01.07.2023

This is a hidden gems series. We are unearthing someone who has been elusive. It is safe to assume that the majority of our audience has probably never heard of him. Meet Keshav Garg, the dynamic Director of Counter-Cyclical Investments, a Portfolio Management Service (PMS) Provider. An alumnus of Fergusson College, Pune, Garg boasts an impressive 15-year stint in the equity markets, focusing primarily on small-cap companies. Counter-Cyclical Investments, under Garg's leadership, has a straightforward philosophy: "Buy gold at the price of silver." They zero in on small-cap blue-chip companies (QID or Quality in Downturn) navigating temporary business downturns. These are firms whose stock prices have been unjustly impacted, presenting ripe investment opportunities. Garg's approach is meticulous. He looks for small market dominators in niche sectors, firms with promising financial metrics, and those poised for imminent growth. A strong promoter track record, high dividend payouts, and resistance to technological disruptions are among other criteria. On the flip side, Garg steers clear of certain sectors, such as Real Estate and Gems and jewellery, and avoids companies heavily reliant on government clientele. While it is easy to write such narratives, Garg has backed it with substance. He has a proven track record of 15 years navigating the small & microcap world. Selling in Garg's playbook is just as strategic as buying. Whether it's due to changing business fundamentals, corporate governance issues, or simply finding a better investment opportunity, Garg ensures the decisions are calculated and in the best interest of their investors. As we conclude this written glimpse into the investment world of Keshav Garg, it's worth noting that there's so much more to explore. Dive deeper into his distinct philosophy, meticulous investing style, and the art of crafting a portfolio with promising small and microcap gems in our latest episode of Stoic Talks. Tune in to get an in-depth understanding of the man behind Counter-Cyclical Investments and the strategies that set him apart. We wholeheartedly thank DSP Mutual Fund for collaborating with us for this particular episode of Stoic Talks. Podcast Record Date: 19.06.2023

S02E06: "Two Value Investors’ tryst with Derivative" with Gaurav Sud & Siddharth Aggarwal by Stoic Investment Managers

Shyam Sekhar is an active and renowned value investor with over 30 years of experience in financial markets. He has carved out a special niche for himself in the field of investing in Cyclicals and Qualitative (Fisher Style). Shyam was profiled in the book ‘Masterclass with Super Investors’ where his life story and stock selection methodology were detailed. Shyam is one of the rare people in the financial world, who call a spade a spade and is very candid and honest in his interactions, always willing to share his wisdom with the curious seeker. Currently, he is the ideator and founder of ithought Financial Consulting LLP which has various offerings catering to retail investors. https://ithought.co.in/services/portfolio-management-services/ Shyam is very active on social media and shares his wisdom generously. His podcasts and blogs have a wealth of wisdom. Shyam is credited with building the first independent proprietary equity research desk in Chennai. He is an advocate for investor awareness. He was president of the Tamil Nadu Investors Association (TIA) from 2012-2015. He is an active speaker in public forums and is a regular columnist at Dinamalar and Livemint. This Podcast went into detail about his investing style, how he allocates between two different styles, the holding period and the art of selling. Listen in, you will definitely pick up some hidden nuances.

Prabhakar Kudva is the co-founder and director at Samvitti Capital. He is a successful long-only growth investor. He has been selected as one among 40 under 40 Investment managers by AIWMI (Association of International Wealth Management of India). Prabhakar has been generating market-beating returns over multiple years by cherry-picking a number of high-growth businesses which have turned out to be big winners. He has been authoring a popular blog (Investment Insight India) on investment ideas for several years. Prabhakar has also worked in the financial technology product space designing products for the capital markets. As the co-founder director of Samvitti, he focuses on unearthing long-term investment opportunities for the various long-only portfolios that Samvitti manages. In this episode of Stoic Talks, we will delve deeper into his two separate investing buckets, stock selection, allocation process, and how he has built setups around structural tendencies like momentum, mean-reversion, smallcap, exhaustion etc that are present in the market. Let’s tune in. Podcast Record Date: 14.12.2022

Rohit Chauhan, founder of RC capital management is a well-known Investor/Advisor in India. Rohit started his investment journey in the late 90s and got inspired by legendary investors like Benjamin Graham, Philip Fisher, Warren Buffet, and others. Over the last 20+ years, Rohit has followed value investing approach religiously focusing on businesses with high quality, competent & ethical management, long-term growers, and attractive valuation. Rohit has been sharing his thoughts on value investing through his blog for the last 15+ years: valueinvestorindia.com. The blog has a vast reach and respect in the Indian value investing circles. I received a call from Rohit a few years ago, where he showed interest in Momentum investing. His concern was to find a way to ride a monster stock that has rallied way beyond its intrinsic conventional value. This ability of Rohit to embrace multi-disciplinary ways to sharpen his edge distinguishes him from ordinary fund managers. His style drift has improved his performance significantly in the last few years. He is an avid learner and has started to apply his acquired skills to improve his " effort-to-reward" ratio. In this episode, we will discuss how Rohit’s strategy has evolved over the years and the nuances thereof You can learn more about Rohit and his offerings at: rccapitalmanagement.com Listen in. Podcast Record Date: 18.09.2022

Tom Basso, more popularly, ‘Mr. Serenity’ is an American Hedge Fund manager. He is living a semi-retired life now trading his trend-following system on some 21 different asset classes from the comfort of his bedroom spending a few minutes every day while having ample time for his family and passions like ‘Fishing’. He is called ‘Mr. Serenity’ because his trading style is totally nonchalant as you will learn in this Podcast. There is Zero room for discretion, be it buying, position sizing, or selling. Even his hedging mechanism is on full Auto Pilot. He was interviewed in New Market Wizards by Jack Schwager and since then has been interviewed by all major podcasters the world over. He runs a very informative and interesting website EnjoyThe Ride detailing his trend-following methodology EnjoyTheRide.World He founded and ran Trendstat Capital Management until it was closed in 2003 when assets under management fell to $65M. Tom authored three books: “Panic-Proof Investing” and the self-published “The Frustrated Investor”. He was elected to the board of the National Futures Association in 1998, He is also the Chairman of the Board of Standpoint Funds, located in Scottsdale, Arizona, which specializes in All-Weather investing. Tom has recently published his new book The All Weather Trader: Tom believes that investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where to buy and sell. Tom Basso is also active on Twitter if you wish to contact him. https://twitter.com/basso_tom In this Podcast, we delve deeper into his trading system, position sizing, and hedging technique. I am sure our nuanced audience will pick some hidden, valuable nuggets from this conversation. Podcast Record Date: 13.09.2022

We start the STOIC Talks Version 2 with Samit Vartak. Samit Vartak is the founder and Chief Investment Officer (CIO) of SageOne Investment Managers, (PMS) which has had a stellar performance record since its inception. Link here to see details https://www.pmsaifworld.com/portfolio/sageone-investment-managers-core-portfolio/ Samit has a commendable corporate experience prior to his joining the Investment world. After finishing his MBA from OLIN School of Business (Washington University) and CFA, he spent a decade in US working in corporate strategy with GAP Inc and PWC Consulting, Deloitte and E&Y in their M&A departments. SageOne follows a Growth Investing philosophy where the key emphasis is to spot high growth businesses with sustainable competitive advantage run by clean and competent management. Samit has also penned his philosophy and views in various blogs and shareholder letters. In this episode, both Puneet and Nooresh delve deeper into the nuances involved in such an approach. Podcast Record Date: 30.08.2022

In our 16th episode, we present to you, Mr. Alok Jain. Eugene Fama the father of Efficient Market hypothesis openly admitted to the 02 anomalies, namely Value and Momentum. While value hunting is considered as Investing, somehow Momentum Investing almost sounds like an oxymoron. A typical buy and hold investor cannot even fathom these 02 words used in the same breath. Mr. Alok Jain backed by his back-tested automated systematic trading systems named Mi-50 and Mi-25 is here to break that myth. He demonstrated that by having a rule-based entry and exit, one can efficiently exploit this inefficiency. We at StoicInvesting.com, of course, are not endorsing his offerings; neither are we commenting on the efficacy of the strategy. Our job here is simply to present the various avenues available, different ways to skin a cat. Like our caveat says, There is only one right way, Yours. To know more about him, his background and his offerings, please feel free to explore his website, www.weekendinvesting.com

In our 15th Episode, we present to you Ms Bethany Mclean. All of you must have seen that famous and enchanting documentary: ”Smartest guys in the room”. She is the author of the book with the same name behind that documentary. That is not the only claim to fame for Bethany. She has also written “All the devils are here” unearthing the nuances of 2008 financial crises. Bethany McLean is a contributing editor at Vanity Fair and also a columnist at Reuters. In this freewheeling interview we touch some sensitive topics pertaining to facts, accounting and psychology behind the biggest fraud and financial crises of our times. And also what does it take to be a whistle blower. Fasten your seat belts and enjoy the ride. let’s listen in… Podcast Notes: [1:42] How did she spot the fraud in the first place? [6:15] Transition from Analyst to journalist? [9:20] I am an OUTSIDER” [9:25] Jim Chanos!!! The short seller [13:14] Role of Luck [15:40] A cage rattler (Is there any Life risk?) [17:45] Easier said than done “Corporate Governance – Code of Conduct” [21:54] Ever considered short selling as a career? [23:25] Freedom comes with Responsibility. [25:18] Life moves on!!! But were any lessons learnt!! [29:21] Where to look for discrepancy? [35:48] Accounting is the presentation of reality [36:07] Too big to fail Crony capitalism!! [37:34] Line between right & wrong is drawn after the result (hindsight) [38:16] How to keep “successful” fraudsters in check? [44:10] Bethany McLean’s course [49:30] Facts are Slippery Some famous writings: Is Enron Overpriced? (2001) Smartest Guys in the Room (2004) All the Devils Are Here (2011) Shaky Ground (2015)

Some books take legendary status because of the breadth and depth of the content and their ability to become a guiding force for its readers. On one end, we have books like The Intelligent Investor and Security Analysis from Benjamin Graham which are always in an investors reading list. Similarly, if you ask the traders, two books are always in their list. One is The reminiscence of Stock Operator and the other one is The Market Wizards. Almost every market participant who has read the book has enjoyed it. The book has inspired and guided millions of traders & what differentiate these books from other profiling attempts - is the amount of depth that the interviewer goes into. Today, we have with us the Man behind Market Wizards - Mr. Jack Schwager. Mr. Schwager is a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books like: Market Wizards (1989, 2012) The New Market Wizards (1992) Stock Market Wizards (2001) Hedge Fund Market Wizards (2012) Market sense & Non sense (2012) Schwager on Futures (1995) Getting started with technical analysis (1999) He is one of the founders of FundSeeder, a platform designed to find undiscovered trading talent worldwide and connect unknown successful traders with sources of investment capital. Previously, Mr. Schwager was a partner in the Fortune Group (2001-2010), a London-based hedge fund advisory firm. His prior experience also includes 22 years as Director of Futures research for some of Wall Street’s leading firms, most recently Prudential Securities. Without much delay, let's profile the profiler: Jack Schwager Notes: [4:00]: The transition from a Fundamental Analyst to a Technical Analyst. [6:00]: Does Fundamental analysis contradicts Risk Management ? [11:00]: Can one person wear both the hats of Trader & Investor ? [17:30]: Views on averaging up & averaging down ? [27:00]: "The best trader that I ever interviewed" [29:00]: Don't judge things on Returns alone - without understanding the underlying Risks taken. [36:30]: Are great traders born or is it a skill that can be cultivated ? [43:00]: Is there a universality in technical strategies & are they equally valid in all markets of the world ? [46:30]: Where to look for inefficiencies while developing an indicator ? [1:00:30]: Process followed to interview the Legends of Investing. [1:03:00]: What things that didn't worked during previous interviews ?

As the saying goes, "I am only responsible for what I say, not for what you understand". Markets are the best place for all such kind of misinterpretations. The tendency of market participants and the media houses is to take stuff out of context many times. Well, we have with us today, Mr. Shankar Sharma who as per his own admission has often been one misinterpreted voice in the market. A person with a sharp research mind & an acute investor, today discusses with us about various interesting nuggets, thought processes & models he followed over 3 decades of his investing journey & ofcourse, he also talks about his image of being a "Perma Bear" in the markets. Without much delay, let's hear in to Mr. Shankar Sharma:

There are two kinds of people in our Investing industry: 1) Who have little experience of outperformance – that too primarily during a Bull market. 2) Who consistently outperforms, across the market cycles, and also underplay the role of Skill in the debate of Luck vs Skill. Among these rare second breed, there is an even rarer subsection, who are brutally honest in their approach to investing & life. Our guest today, belongs to this rare of the rarest breed - Anoop Bhaskar. An award winning Mutual Fund manager, who is extremely candid & equally talented. We have Nooresh Merani as the co-host & we together had a great learning experience profiling Mr. Anoop. Without much delay, let’s listen to wisdom:

In this compilation we are bringing you the topics of Valuation & Stock selection techniques followed by our previous guests, Gaurav Sood, Ankur Jain & Debashish Basu We are also streaming on: iTunes: https://itunes.apple.com/in/podcast/stoic-podcast-series/id1200158881?mt=2 Stichers: http://www.stitcher.com/podcast/stoic-investing-2/stoic-investing-podcast?refid=stpr

To the investing audience Guy Spier. CIO of Aquamarine funds, needs no introduction. From meeting Warren Buffett accidentally by attending a class just because had a hots for a girl to spending upward of 300,000 dollars to have lunch with Warren and then submerging himself in learning the wisdom, he is a fun guy to talk to and a wise gentleman to learn from. I had a great time recording this podcast but not for usual investing lessons but some deep and interesting life lessons. With that introduction.. let’s listen to Guy Spier !!!

As you evolve in your journey of stock market investments, you soon realize that stock selection alone doesn’t really take you anywhere. Money management is perhaps the most important aspect of this game which cannot be ignored. If you search the web for money management and risk management, your search most likely would throw out 2 names, Ralph Vince and Van Tharp. In today’s episode we share with you a fascinating conversation I had with Ralph Vince. Ralph Vince is a trading systems expert and has programmed successful trading systems for fund managers and Sovereign wealth funds. Ralph is an authority on the subject of position sizing and his statistical techniques and Optimal F are the industry standards. Please listen in. His home page: http://www.ralphvince.com Books he has written: http://www.amazon.in/RalphVince/e/B001IODO5U

Torch bearer of a Maverick Organisation : Stoic Podcast with Kalpen parekh by Stoic Investment Managers

The otherwise perfect theory of “Efficient market hypothesis” has few observations which the academicians ignore as ‘anomalies’. The first such anomaly is ‘Value Investing’ which has consistently proven to outperform the markets if followed with the required rigor and discipline. There have been numerous studies and countless books on the same. One such study which you should read is done by Tweedy and Browne called, “What has worked in Investing”. The other anomaly is Momentum. There are equally high number of studies on the subject. A lot of them have been conducted by one of our previous guest, Wesley Grey. It was a fascinating conversation with him on combination of these two anomalies. There are countless books on this subject too. Few of them are based on really pioneer work in this area. One such book is ‘Dual Momentum investing’. It’s a fascinating read and it comes from a fascinating character too. No wonder its a 5-star rated book on Amazon. The author is a practitioner, researcher and has worked with many legends of the industry, including Paul Tudor Jones, John Henry etc… Today, our guest for this podcast is the author of Dual Momentum investing, an amazing human being and equally great momentum investor, Gary Antonacci.