{"id":2092293,"date":"2018-11-14T14:18:16","date_gmt":"2018-11-14T08:48:16","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2092293"},"modified":"2018-11-14T14:18:16","modified_gmt":"2018-11-14T08:48:16","slug":"fund-portfolios-and-market-cap-deciles","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2018\/11\/14\/fund-portfolios-and-market-cap-deciles\/","title":{"rendered":"Fund Portfolios and Market Cap Deciles"},"content":{"rendered":"

When you sort the universe of stocks in descending order of their free-float market caps and divide them into 10 sets, you end up with StockViz Deciles<\/a>. If you were to plot the dispersion of market-caps within deciles, here’s how it would look:<\/p>\n

\"market<\/a><\/p>\n

Most of the activity in the markets are in the first 3-4 deciles. Liquidity, as measured by the bid\/offer spread, trails off as the float drops:
\n\"bid\/offer<\/p>\n

The wide bid\/offers presents a scale challenge to small-cap fund managers. The hair-cut to NAV that they will have to take while crossing the spread is just too large. So most small-cap funds pull up:
\n\"\"<\/a>
\n\"\"<\/a>
\nNotice how most of the portfolios is concentrated above the 4th decile. Now, contrast this to the NIFTY SMALLCAP 250 index:
\n\"SMALLCAP<\/a>
\nIf the funds were to stay true to their small-cap moniker, they really shouldn’t be holding decile 0 (mega-cap) stocks. However, holding them seems to be the only way to scale AUM.<\/p>\n

If you care about whether a fund is sticking to its portfolio mandate, give our Overlap Tool<\/a> a spin.<\/p>\n","protected":false},"excerpt":{"rendered":"

When you sort the universe of stocks in descending order of their free-float market caps and divide them into 10 sets, you end up with StockViz Deciles. If you were to plot the dispersion of market-caps within deciles, here’s how it would look: Most of the activity in the markets are in the first 3-4 … <\/p>\n","protected":false},"author":2,"featured_media":2056091,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471],"tags":[3731,17],"class_list":["post-2092293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","tag-decile","tag-mutual-funds","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2092293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2092293"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2092293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2056091"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2092293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2092293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2092293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}