Taking close to a 3% hit due to high beta holdings

January 16, 2018
Category: Equities

Today our portfolio takes a near 3% hit where the benchmarks SENSEX lost only 0.20%. Some of our high profile holdings like Phillips carbon, HEG, GNFC have been reason for this meltdown. GNFC an indefinite closure of its Dahej plant due to gas leak, the stock tumbles 10%.

This stock was in the sell for us this week, while the trigger got far away due to a big spike the stock had yesterday, which reduces the impact for us from this stock. TDI, one of the primary products of the company which became a high demand product following shut down of global facilities due to similar leaks, gave GNFC the edge to earn big profits. Now, the same issue has come to them too.

As we got the stock in our portfolio in October 2016 at 215 levels, we have made more than 100% gains in this investment and all of it is tax free. Our system was able to identify a company that got benefitted due to global issues and when it came across similar problems, the system is getting us out, after a good profit on the investment.

Similarly, Phillips Carbon, HEG, Graphite etc which has lost big time today, were the big gainers in the last 2 weeks, that has enabled us to have very big out performance against the index. Now, they are giving back. Having high beta stocks in the portfolio will require to face high volatility too, while over a longer period due to prudent management, the performance numbers will be good.