Last Updated on: 22 Nov 2024

BM Horizon Hunters
Hunting for Long Term Wealth Creating Stocks!

Past 1M Returns
High Volatility
-2.01%

smallcase rationale
Investing in a bull market is pretty much like a hunter’s job. You have to hunt for
stocks that are priced well for the growth and value they posses at the time of
purchase. The BM Horizon Hunter will focus on buying those small and mid caps
that are of a buy and hold types. The idea is to focus on those companies that will
grow earnings at above 20% CAGR for the long term and thereby become large
caps if held for the entire duration of the growth.

We intend to buy those stocks that are priced well for the earnings that the
company promises to grow at.

These stocks do not need constant rebalancing because they are not a part of any
market flavour. The only flavour will be growth and value. We will concentrate the
portfolio in a maximum of 15 stocks and the mid and small cap part of portfolio will
be 85% of the total weight at most times.

We aim to restrict the portfolio to a select group of long term secular growth
themes originating from:

a) Consumer

b) Banking & Financials

c) Technology including exports

d) Healthcare

This smallcase is mostly for an exclusive group of investors who want to participate
in the buy and do not disturb type of stocks.

Created by
SEBI Reg. Number Subscription Type
Basant Maheshwari
INH000017949 Paid
Investing

Methodology

Defining the universe

All publicly traded companies on the National Stock Exchange of
India are included in the universe

Research
The team does in-depth research to decide the criteria to be used
for constituent screening

Constituent Screening
The research team does individual stock picking after going
through company reports and financials and decides on a host of
qualitative and quantitative parameters to be considered while
screening stocks for the respective strategy

Weighting
Following parameters are considered while assigning weights to
stocks in this smallcases

Market capitalization

Management quality and vision

Theme exposure, revenues and earnings visibility

Rebalance
This smallcase will be rebalanced on an as-needed basis

Ratios

Ratio smallcase Equity Smallcap

PE Ratio 31.45 35.35

PB Ratio 4.21 4.45

Sharpe Ratio — 0.97

Dividend Yield (%) 0.28 0.55

Important Fields
Underlying Asset Marketcap Category Review Frequency
Stocks & ETFs Equity Smallcap Need Basis

Last Reviewed Next Review On

— To Be Decided

Holdings Distribution

Largecap Midcap Smallcap

6.00% 20.00% 74.00%

Live Performance vs Equity Smallcap

BM Horizon Hunters vs Equity Smallcap

104

102

100

98

96

94

Oct 13 Oct 20 Oct 27 Nov 03 Nov 10 Nov 17

Note: Live performance includes rebalances. It is a tool to communicate factual &

verifiable returns on behalf of the smallcase creator. It should not be considered as
an advertisement, promotion or claim.

How to subscribe

How to invest

Definitions and Disclosures

CAGR

CAGR (compounded annual growth rate) is a useful measure of growth or

performance of a portfolio. Every year returns generated by a portfolio are
different. Let's say if a portfolio is live for 3 years and returns generated by the
portfolio are 5%, 15% & -7%, respectively in the first, second and third year. Then we
calculate CAGR as a return number that would give the same terminal investment
value at the end of three years, as we get when the portfolio gains by 5% & 15% in
the first two years and drops by 7% in the third year. The CAGR in this case would
be 3.94%. This means that you will always end up with the same investment value
at the end of the third year, if your portfolio gains by 3.94% every year or 5%, 15%
and -7%, respectively in the first, second and third year.
In simple words, it indicates the annual return generated by the smallcase from the
date of launch. For smallcases live for less than 1 year, absolute returns in the
applicable time period are shown. Only live data is considered for all calculations.
Returns and CAGR numbers don’t include backtested data.
P.S. - CAGR calculation methodology got updated from 25th Apr’22 on all smallcase
Platforms. Please read this post to understand the changes in detail

Volatility Label

Changes in stock/ETF prices on a daily basis result in fluctuations to the investment

value of your portfolio. In order to help investors understand the extent of
fluctuation they might observe with their smallcase investment, every smallcase is
categorized into one of the three volatility buckets - High, Medium and Low
Volatility. This is done by comparing the smallcase’s volatility against that of the
Nifty 100 Index.
If the daily change in the investment value of a portfolio is too drastic, it means
prices of stocks/ETFs in the portfolio are changing very rapidly. Such portfolios
have High Volatility. Investing in High Volatility smallcases means that changes in
your investment values can be very sudden and drastic, whereas fluctuations in the
investment value of Low Volatility smallcases are expected to be lower in
comparison.
For more information about how volatility is calculated, please check here

Segment

Stocks/ETFs belonging to a smallcase are categorized under different segments.

Weightage of a segment is calculated as sum of weights of all stocks belonging to
that segment. Suppose 4 stocks, with each having a weight of 10%, belong to the
Food Products segment. Then the weight of the Food Product segment in the
smallcase will be 40% (4*10)

For smallcases where manager has not prescribed any weights, equal weights are
assumed for calculations.

Review

Rebalancing is the process of periodically reviewing and updating the constituents

of a smallcase. This is done to ensure that constituents in the smallcase continue to
reflect the underlying theme or strategy

Categorisation of smallcase constituents

All smallcase constituents fall in one of the below categories:

Large Cap

Mid Cap

Small Cap

Multicap ETFs

Debt

Gold

Silver

Commodity

REITs/InvITs

All the stocks listed on NSE(National Stock Exchange) are arranged in decreasing
order of Market Cap, so that the stock with the largest market cap gets 1st rank.
Stocks ranked equal to or below 100 are categorized as large cap. Stocks ranked
below or equal to 250, but ranked above 100 are categorized as mid cap. Stocks
ranked above 250 are categorized as small cap.

Market cap categorisation of smallcases

If the sum of weights of gold, silver, commodity, debt or REIT/InvIT

constituents is greater than 50%, then smallcase is categorized as Non-equity

If the sum of weights of large cap constituents is greater than 50%, then
smallcase is categorized as Largecap

If the sum of weights of mid cap constituents is greater than 50%, then
smallcase is categorized as Midcap

If the sum of weights of small cap constituents is greater than 50%, then
smallcase is categorized as Smallcap

If the sum of weights of large cap constituents is greater than 30%, sum of
weights of mid cap constituents are greater than 30%, and sum of weights of
large cap and mid cap constituents are greater than 80%, then smallcase is
categorized as Large & Midcap

If the sum of weights of small cap constituents is greater than 30%, sum of
weights of mid cap constituents are greater than 30%, and sum of weights of
small cap and mid cap constituents are greater than 80%, then smallcase is
categorized as Mid & Smallcap

If none of the above conditions are met, then smallcase is categorized as

Multicap

For smallcases where manager has not prescribed any weights, equal weights
are assumed for calculations.

Comparison of live performance

To help investors make informed decisions, smallcase platform provide many

tools. One of the tools provided on the platform is the comparison of the live
performance of the smallcase. This comparison is a tool to communicate
factual return information and should not be seen as advertisement or
promotion. Following methodology is used to provide users different options
to compare the performance of the smallcases

All smallcases have an option to compare the live performance against returns
generated by Bank FDs, Inflation and Equity asset class

FD returns are calculated using the data available from RBI. The annual
data for 1-3 year deposit rates is considered. This data is used to compute
a daily index series, where the annual returns of the series correspond to
the annual deposit rates provided by the RBI. For instance, if the annual
deposit rates for year 1 is 6% and year 2 is 7%, the total return of the
series after 2 years is calculated as 1*(1+6%)*(1+7%) - 1 = 13%. This series is
also utilised to determine the CAGR between any 2 specified dates

Inflation returns are calculated using the data available from IMF. The
annual percent change in average consumer prices is considered. This
data is used to compute a daily index series, where the annual returns of
the series correspond to the annual inflation rates provided by the IMF.
For instance, if the annual inflation rates for year 1 is 6% and year 2 is 7%,
the total return of the series after 2 years is calculated as 1*(1+6%)*(1+7%) -
1 = 13%. This series is also utilised to determine the CAGR between any 2
specified dates

Equity returns represent the returns generated by Nifty 50 Index

All smallcases have an option to compare the live performance against the
returns generated by Equity Largecap section of the market - represented by
Nifty100 index

Each smallcase is categorized into one of the market cap categories using the
methodology explained in the section above. Following options are made
available, as per the marketcap category of the smallcase

Market Cap Category Comparable Option

Largecap Nifty 100

Midcap Nifty Midcap 150

Smallcap Nifty Smallcap 100

Large & Midcap Nifty LargeMidcap 250

Mid & Smallcap Nifty MidSmallcap 400

Multicap Nifty 500

General Investment Disclosure

All the information (including charts, ratios and performance) are provided only for
the smallcase created by SEBI registered entities authorized to do so. The
Company, on its own, does not make any claim of performance/returns for such
smallcases. The company only provides tools to these SEBI registered entities for
performance calculation of their recommendations based on this Returns
Calculation Methodology. All services with respect to research and
recommendations are provided by the respective SEBI registered entities. Charts
and performance numbers on the platform do not include any backtested data.
Investment in securities market are subject to market risks. Read all the related
documents carefully before investing. Investors should consider consulting their
financial advisor while considering any investment decisions.

Basant Maheshwari Investing Disclosures

Basant Maheshwari Wealth Advisers LLP is registered with SEBI with INH000017949
as the SEBI registration number. The registered office address of Basant
Maheshwari Wealth Advisers LLP is Office No. 701, 7th Floor, Plot - 211, Dalamal
Tower, Free Press Journal Marg, Nariman Point, Mumbai - 400021, .

The content and data available in the material prepared by the company and on the
website of the company, including but not limited to index value, return numbers
and rationale are for information and illustration purposes only. Charts and
performance numbers do not include the impact of transaction fee and other
related costs. Past performance does not guarantee future returns and
performances of the portfolios are subject to market risk. Data used for calculation
of historical returns and other information is provided by exchange approved third
party vendors and has neither been audited nor validated by the Company.
Detailed return calculation methodology is available here. Detailed volatility
calculation methodology is available here.

Information present in the material prepared by the company and on the website of
the company shall not be considered as a recommendation or solicitation of an
investment. Investors are responsible for their investment decisions and are
responsible to validate all the information used to make the investment decision.
Investor should understand that his/her investment decision is based on personal
investment needs and risk tolerance, and information present in the material
prepared by the company and on the website of the company is one among many
other things that should be considered while making an investment decision.

Basant Maheshwari Wealth Advisers LLP has a contractual arrangement with a

vendor - Smallcase Technologies Private Limited (STPL); whereby STPL provides
technology solutions and related back-end infrastructure along with support for
back-office related operations & processes. STPL does not provide any investment
advice or recommendation nor does it make any claim of returns or performance
with respect to any advice or recommendation.

Investments in securities market are subject to market risks. Read all the related
documents carefully before investing.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification
from NISM in no way guarantee performance of the intermediary or provide any
assurance of returns to investors.

Scope of Services to be provided by the Advisor will be limited/ subject to the

Advisory services which are permitted activity under SEBI (Research Analysts)
Regulations, 2014 including guidelines issued by SEBI and the Advisor shall act in a
fiduciary capacity.
The Scope of Services covered is as follows:
a) Recommend the Client regarding the Securities to be purchased or sold or
Investments to be made as per the applicable law for the time being in force and
Investment Pattern applicable to class of investor;
b) Review, evaluate, structure and monitor Investments so as to achieve the Client's
objectives;
Basant Maheshwari Wealth Advisers LLP for its own proprietary purposes may
invest / divest in various securities / investments, from time to time at its own
discretion. Such proprietary investment transactions may at times be contrary to
the research advice. Basant Maheshwari Wealth Advisers LLP does not recommend
services of any stock broker or intermediary to a client. Basant Maheshwari Wealth
Advisers LLP does not have any commission sharing agreement with any
intermediary for recommending the services either as a stock broker or as other
intermediary. Basant Maheshwari Wealth Advisers LLP does not have Actual or
potential conflict of interest arising from any connection to or association with any
issuer of products/ securities, including any material information or facts that
might compromise its objectivity or independence in the carrying on of research
report services.
Disclosure of all material facts relating to the key features of the products or
securities, particularly, performance track record, warnings, disclaimers etc. Clients
are requested to go through the detailed key features, performance track record of
the product, or security including warnings, disclaimers etc. before investing as
and when provided by the Research Analyst. The Principal Officer and the persons
associated with research report may have holding or position in the financial
products or securities which are subject matter of report.
• If not satisfied with the response of the intermediary, you can lodge your
grievances with SEBI at https://scores.gov.in/ scores/Welcome.html or you may
also write to any of the offices of SEBI. For any queries, feedback or assistance,
please contact SEBI Office on Toll Free Helpline at 1800 22 7575 / 1800 266 7575.
• After exhausting all available options for resolution of the grievance, if you are still
not satisfied with the outcome, you can initiate dispute resolution through the ODR
Portal. ODR is a common Online Dispute Resolution Portal (“ODR Portal”) which
harnesses online conciliation and online arbitration for resolution of disputes
arising in the Indian Securities Market. ODR Portal can be accessed via the
following link – https://smartodr.in/

Contact Details:
Support Telephone: 8591866511
Support Email: [email protected]

Compliance Office Details:

Name: Rashmi Choudhary
Email: [email protected]
Contact: 02249707226

Grievance Office Details:

Name: Rashmi Choudhary
Email: [email protected]
Contact: 02249707226