Strategies that rocked in 2014

WHAT IS A “THEME”?

A StockViz Investment Theme is a portfolio of stocks that follows a particular strategy. It is a convenient way for you to:

stick to a strategy
follow a preset rebalancing schedule
think in terms of your portfolio strategy rather than individual stocks
avoid common behavioral pitfalls
systematically track your P&L and strategy performance

WHAT IS AN INVESTMENT STRATEGY?

An investment strategy is a specific way of going about the process of investing. It identifies specific variables that define a stock. Variables can be anything: risk, style, sector, balance-sheet items, etc..

By mapping specific Themes to your account, you ensure that you stay pure to your strategy allocation. And that there is no “flying by the seat of your pants” investing.

HOW HAVE YOUR THEMES PERFORMED?

We started 2014 with eight investment strategies. Here is how they performed:

Momentum 200	+90.30%
Balance-sheet Strength	+83.23%
Financial Strength Value	+79.53%
Magic Formula Investing	+75.54%
Quality to Price	+69.65%
Market Elephants	+44.69%
Enterprise Yield	+43.54%
Market Fliers	+32.68%

It was one of those rare years when both momentum and value performed at the same time. The Modi-rally coincided nicely with the bottoming of the cycle.

Passive buy-and-hold

Implementing a strategy involves churn. For die-hard fans of the passive buy-and-hold clan, here’s how 2014 looked like:

PSUBNKBEES	+71.37%
BANKBEES	+64.94%
JUNIORBEES	+43.70%
NIFTYBEES	+31.57%
INFRABEES	+25.83%
GOLDBEES	-9.32%

Gold was a money loser and public-sector banks, in spite of all the bad loans and scams, out-performed the rest of the market by a mile.

WHAT SHOULD I DO NEXT?

You should open a demat account with StockViz and invest through our Themes.