• Our challenge is to locate which companies are likely to outperform financially in near future and have long term sustainability.
• We specialize in locating sectors coming out of deep recession and locate least dishonest managements and companies well placed to benefit from such a turnaround.
Our Investment Strategy
We at Asiatic stock & Securities Ltd follow a hybrid yet simple investment strategy involving systematic approach to investments
We believe India with demographic advantage of youthful average age, educated, hard working & growing population offers a sustainable growth in GDP All its economic parameters are bound to constantly improve vs. other countries such as America, Europe & even china for the next 10/15 years. We have following challenges to overcome
Challenge 1: To find sectors/sub sectors within the economy which will either do much better than present in financial terms or to locate sectors which have faced severe head winds & are now coming out of deep recession /downturns because of improving macro-economic events
Challenge2: Locate Companies which are- well placed when Turnaround or growth phase starts. Also these Companies should not be-dishonest/manipulative
Challenge3: : Timing- Wait for market downturns and still buy in parts whenever possible. Also use options to lower cost of purchase or earn incomes. Having accumulated stocks we have to wait for sector and market recovery. This may take agonizingly long periods
Challenge 4: To sell investments when markets are overheated, expectations are huge with overall positive consensuses in the market. Finally this is the time we get out and turn to running income strategies 1, 2 & 4. (This is a tough decision.)
Broad Synopsis of our strategies
1. Cash future trades: we utilize parts of funds to generate risk free returns from cash future spreads volatility. Here we specialize in something called as dividend arbitrage.
2. Volatility arbitrage: Option combinations which are market neutral but play on volatility mispricing and interest accruing in-house developed strategy which gives marginal returns when nifty does not move but generates large returns when volatility goes up or market makes 200 pts moves and above
3. Pair Trades: At times we find some stocks in one industry having very similar products and similar past history of correlated returns on markets move out of synch. When such divergences are returning to normal we buy cheaper & sell expensive stock derivatives. Pair trades are risky and may involve MTM losses so only a small portion of investment funds are diverted to this strategy.
4. Quantative strategies - these are quantative proprietary trading systems for the financial markets built on amibroker. Currently live with 5 intraday quantitative strategies in the NSE FNO market on a basket of 30 stocks these are working on strategies with momentum, range bound, trend following approaches.