Some stuff that I am reading today morning:
Tata, Singapore Airlines to raise new airline (WSJ)
Ramesh Jogani to raise 2000 Crores for realty projects (Mint)
Delhi Police are not with you if you are poor (NYT)
FIIs back with a bang (BS)
6 Things you need to know about Janet Yellen (Salon)
Investment noise and how to deal with it (RickFerri)
10 Simple Steps to a Billion $ Business (DailyReckoning)
Twitter announces IPO-the pricing game begins (AswathDamodaran)
8 Creativity lessons from a Pixar animator (Zenhabits)
Smart Beta and the pendulum of mispricing (RA)
2 replies on “Linkfest:Sept 20,2013”
“Smart Beta and the pendulum of mispricing” is an excellent alpha idea!….I have been trying contra investing hypotheses. The problems however are a) If the price goes further down say 1/3 then just to break even the stock has to be a 3 bagger. ie. It is difficult to find the bottom of a bottomless pit! b) Its difficult to ascertain how many stocks would go bankrupt or become zombi. (example : Geodesic) This is especially true in Asia where at times accounts are manipulated 3) The buffet strategy ie. interaction with management, creditors, employees etc. is not practical for retail investors that is why its diffcult to make sure the real turnaround candidates & how many years they would take in this process…….so the point is in case of contra investing it is 50%(?) lottery !!!
I have been trying to find out historical examples of “Smart Beta” stocks in Indian context Eg. : Pennar Industries, United Phosphrous, Diamines & Chemicals etc.
I found major turnaround companies which went through the process of corporate debt restructuring : Hindustan Unilever, ITC, ICICI Bank, GSK, Thermax, Voltas, Jain irrigation, Crompton Greaves, Mahindra Satyam, Wokhardt, V2 Retail, India Cements, Arvind Mills, etc.
But there are also many examples like Dhanus technologies, Teledata Informatics, Suzlon, Kingfisher etc. What is the net result ???
Does the “Smart Beta research” is more profound when the capital base is relatively small ?
Is there any research about “Smart Beta…….” in the Indian context ?…..If so please share with your readers.