Our-Philosophy
- Churn is called as bad and it’s a myth.
- Churn is good from risk management perspective.
- We are in the business of managing risks (almost 25 types of risks).
- Reducing, mitigating and transferring risks will give money.
- When risk is managed better, returns are by products.
- Known risk to be managed well.
- Unknown risk is not known and cannot be predicted or managed.
- Anything which can be predicted with macro data is known risk.
- Perceived risks vs risk factored in price of the stock or asset.
- Don’t have any love or affection to any stock.
- Churn and timing has to be based on the risk on environment or risk off environment.
- Sectoral performance varies based on risk on or off environment.
- Risk on should be towards high beta.
- Risk off should be towards defensive.
- Most people think churn means lack of clarity, but it has to be taken from risk management Perspective and also macro conditions should be considered.
- Long term or 10yrs risk can be managed, but when you manage your short term or near term risk then you can generate alpha.
- Divide your total portfolio based on Long term view, short term view, medium term view, hedging, cash call.
- Have a combination of all and manage risk simultaneously.
- Markets are dynamic, and data points are changing continuously, then why should our money management style be static ?
- Buy and hold era has passed, this is an era of dynamic managers.
- Volatility is an opportunity, not a risk.
- Don’t look at any data point in isolation.