GIRIK Capital Multicap Growth Equity Strategy

The portfolio follows the A Willian J. O’ Neil strategy. Girik Capital’s investment philosophy is based on the following five steps:

• Step One: Automated Screening for superior outcomes
• Step Two: Establishing Leadership
• Step Three: Fundamental Research Overview
• Step Four: Valuation Consideration
• Step Five: Risk Management Framework

Girik Capital focuses on investing in emerging businesses having good governance, growth and efficiency.

The CANSLIM stock-picking methodology created by American investor William J. O’Neil is the source of inspiration for the Girik Multicap Growth Equity Strategy. This method aims to find top firms from top industry groups that exhibit strong acceleration in earnings, a novelty in goods, or a change in management. It proposes purchasing them at the correct price with enough margin of safety before the company’s significant stock price gain.

Because of a clever comeback from lows at the end of the month, the markets, which were still in corrective mode, closed the month just slightly down. The rally was restrained by the abrupt start of the second COVID wave and the possible negative economic effects of regional lockdowns.

The contagious virus has returned with force in the second wave, just as the populace and the governments believed we were over it. The nation is experiencing hardship due to its overburdened healthcare system and lack of life-saving medical supplies. We offer up prayers for the welfare of our neighbours. The thoughts and prayers are with those who have lost loved ones to the virus. Despite how hopeless it may seem, humanity has already surmounted enormous challenges to become stronger. We will also get through this catastrophe.

A few industries distinguished out owing to their outstanding performance despite depressing markets. Metals maintained their strong performance, climbing our leadership charts to the top. IT took a little break as sugar climbed the list of top sectors. Select APIs also gained strength, and chemicals remained a leading industry.

Bull markets usually begin with scepticism and conclude with unwavering certainty. Rather illogically, this causes investors to become protective at the start of the bull run and quite aggressive towards the conclusion. It begins to make sense, though, when we realise that at the beginning of a bull market, all of the news is negative, and the macroeconomic indicators are poor, but at the peak, everything is fine. On negative news, investors naturally become risk-averse, whereas, on good news, they naturally become risk-takers. This common trap that even seasoned investors fall for may result in multiple expensive errors. Investors must be aware of their actions at various times of the bull market to resolve this paradox. Investors should create reliable procedures to aid them in determining how aggressively or defensively they should approach the market if that is not achievable.

As growth investors, they are aware that acting hastily around peaks might result in big losses for them. As a result, you must exercise caution, especially while using the new currency. When growth tales fizzle out, blindly purchasing the bull market winners at their top can destroy portfolio results. Fair enough, you have no way of foreseeing market excesses, and you also lack a crystal ball to identify the peaks. Therefore, when someone uses the fresh funds, they attempt to be methodical in their approach. They attempt to avoid being purchasers at all costs and instead adhere to a strategy for investing the additional money gradually.