Yesterday, when I was putting out the results for the financial year for each of our services, I found an interesting thing.
We reported the results based on the equal-weighted average of all the open recommendations during the year for each service. It does not make much difference in the Long Term service, as we hold most of the stocks across the year and buy and sell a smaller number in the portfolio. There isn’t much of a cash call in the process.
Fig: Results across intelsense.in services.
In Hitpicks, the situation is completely different. By its very nature, Hitpicks tends to get out of a position with relatively small losses and ride larger gains. Based on the equal-weighted average of stocks recommended, the annual return is 5.24%. However, the moment we consider it as a portfolio and manage it that way with keeping the cash aside when there are lesser recommendations, which is what we advise to do, then the results change dramatically to 28%.
Of course, a very small part of this would be contributed by dividends. But the major contribution to such a large difference is that this year was choppy, Hitpicks helped get out with small losses, remain in cash for a while and then ride the small waves.
Link to the smallcase: https://intelsense.smallcase.com/smallcase/INSMO_0006
This again reiterates to me the utility of having multiple strategies in our arsenal to have a better and smoother equity curve over time.