Weekend Mega Linkfest: August 26,2016

Some off beat reads for the weekend:

Why India is the true victor at the Olympics (Theodore Dalrymple)

Bihar’s war on alcohol (HP)

Khursheed,a Kashmiri Jawan,took 8 bullets for India (Quint)

How one tweet led Syrians to Germany (Guardian)

Rare picture of Mahatma Gandhi & Dalai Lama (Twitter)

How this 29 year old built a 180 Crore solar business (YS)

How the European harmonium become synonymous with Indian music? (Scroll)

Why the US President needs a council of Historians (Atlantic)

What drives Great Britain’s medal machine (Spectator)

In Photos:African Slavery in Iran (Guardian)

Research: Being lazy is sign of high intelligence (Independent)

The most exclusive restaurant in America (New Yorker)

Travelogue:Drive to Tawang (TeamBHP)

Mulayam Vs Akhilesh Yadav (Gossip Guru)

Naga girl fights racism with poetry (BI)

Cut the risk and raise cash

Global liquidity seems to be the reason all these relationships are breaking down. With negative rates pervasive across sovereign markets, this is also changing across asset relationships. The markets seem to no longer be heterogenous, everyone is on the same side and looking at the same central bank put, playing the short-term liquidity. Without heterogeneity in markets, short term liquidity overpowers everything else.

With all these relationships breaking down it is no surprise that many investors are confused, doing badly and very worried. I have very rarely seen so many top quality investors all so bearish, across all asset classes, at the same time. Whether it be Soros, Druckenmiller, Singer or others, most of the people with really good long-term records are asking you to exit the markets entirely.

As is typical, markets will keep us guessing, and test the conviction of the bears. I would not be surprised to see continued market gains globally driven by the liquidity. However, be rest assured, this will end badly, and when it does no-one will have time to react. The prudent thing would be to slowly take risk off the table, knowing that one may hurt returns in the short term, but preserve capital for the inevitable bust. If you are a global investor, the responsible thing to do is cut risk and raise cash, no matter how painful it may be in the short term.

India is in a structural bull market, but will also correct if global markets turn turtle. Any correction in India remains a buying opportunity.-wrote Akash Prakash,Amansa Capital

Portfolio of New World Fund in India

This post is in continuation of my coat tailing series (see here)

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New World Fund Inc is a well known FII in the Indian Markets.

It’s significant holdings in India as on 30 June,2016 as per Stock Exchanges is given below:

Company Name Symbol Entity Name Date End # of Shares % Value (In Crores)
Grasim Industries Limited GRASIM NEW WORLD FUND INC 201606 1144056 1.23 518.07
Gujarat Pipavav Port Limited GPPL NEW WORLD FUND INC 201606 16350000 3.38 279.58
Havells India Limited HAVELLS New World Fund Inc 201606 7940000 1.27 330.07
Indiabulls Housing Finance Limited IBULHSGFIN NEW WORLD FUND INC 201606 4407910 1.05 363.3
Kotak Mahindra Bank Limited KOTAKBANK NEW WORLD FUND INC 201606 19793219 1.08 1545.36
Power Grid Corporation of India Limited POWERGRID NEW WORLD FUND INC 201606 58804350 1.12 1071.71
Shriram Transport Finance Company Limited SRTRANSFIN NEW WORLD FUND INC – FOREIGN INSTITUTIONAL INVESTOR 201606 3582410 1.58 447.41

Linkfest: August 26,2016

Some stuff I am reading today morning:

Domestic investors are in the mood to redeem (Raamdeo Agrawal)

9.25% DHFL NCD  (MyInvestmentIdeas)

Delayed price discovery of Welspun India (Mint)

The 1000% stock rally in Zen Technologies fades (Bloomberg)

Notes from MF India Summit 2016 (Businessworld)

Will early retirement make you lazy? (RetireBy40)

Pundit or Professional? (Pension Partners)

Forget CAPE,think cash flow (Aswath Damodaran)

Clarifying true diversification (Longboard)

George Soros’ plan to overthrow Putin (ZeroHedge)