Unveiling Alpha_10 Smallcap: A Powerful Momentum Investment Strategy

We are excited to introduce our latest investment portfolio, Alpha_10 Smallcap, designed to harness the potential of concentrated momentum investing in smallcap stocks.

In this blog, we’ll explore the key highlights and features of Alpha_10 Smallcap, helping you understand how it can benefit your investment goals.

Key Highlights

• Concentrated Portfolio, Higher Returns: Alpha_10 smallcap offers returns by focusing on select large-cap stocks, increasing the potential for alpha generation.
• Active Management with Weekly Rebalancing: This strategy is actively managed with weekly rebalancing to keep your portfolio in sync with evolving market conditions.
• Established Universe, High-Quality Small-Cap Stocks: We include high-quality large-cap stocks to diversify risk while maintaining a focus on established companies.

Understanding Beta and Momentum Investing

The beta of a portfolio is a measure of its risk, or how much it can go up or down relative to the market. We focus on high-beta stocks which have a tendency to go up. Thus whenever the market moves by X, we tend to move by 1.2 times X

Momentum is the tendency for a stock or other asset to continue moving in the same direction it has been moving in. It has been a time-tested observed phenomenon.

Therefore, to generate the alpha, we combine a selection of high-momentum stocks into a concentrated portfolio of 10 stocks which results in a high beta and thus, a higher return than the benchmark

Alpha_10 Smallcap: Unleashing the Power of Small Caps

Smallcap stocks, often representing companies in their early stages, offer immense growth potential. They tend to fly under the radar of many portfolio managers, presenting opportunities for investors to discover hidden gems. They come with increased risk, characterized by higher volatility and lower liquidity.

Alpha_10 Smallcap is a concentrated momentum portfolio designed to tackle these challenges head-on. Our quantitative strategy scans the top 350 small caps in the Nifty index and selects a portfolio of 10 promising stocks for your investment consideration. What sets this strategy apart is its weekly rebalancing, ensuring that underperformers are promptly replaced while keeping your portfolio aligned with the ever-evolving market dynamics.

Performance Metrics

One of the most compelling aspects of Alpha_10 Smallcap is its remarkable performance and the potential for alpha generation:

Year on Year performance of Alpha Smallcap against Nifty Smallcap100

Who Is Alpha_10 Smallcap For?

Alpha_10 Smallcap is tailor-made for investors with a high-risk appetite and a thirst for potential multi-bagger returns. The strategy’s universe comprises the top 350 smallcap stocks from the NSE, serving as an initial screening to shortlist legitimate stocks out of thousands of available ones in the market. This strategy is especially well-suited for those who prioritize the pursuit of phenomenal returns over simply outperforming the benchmark Nifty50 and Nifty Smallcap 100

In Conclusion

Alpha_10 Smallcap is your gateway to the world of high-risk, high-reward small-cap momentum investing. It offers the potential for impressive returns, but it’s tailored for bold investors seeking the next big opportunity.

Explore further and begin your alpha-seeking journey here: Link

Risk comes from not knowing what you’re doing but with Alpha_10 Smallcap, you can make informed decisions and potentially unlock the alpha you desire.