Podcast Vol: 1

Title: Nivesh ka Safar- with Fund Manager Siddharth Mandalaywala ke Sath

Expert Speaker: Mr. Siddharth Mandalaywala (Fund Manager, CONCEPT)

It is very important for an investor to be well equipped with the knowledge of where and why he is investing his money. This knowledge is substantially lacking even though the information flows seamlessly without any barriers in this era. We at "CONCEPT Investwell" have taken the initiative to spread the awareness and the importance of the same and also to eradicate this handicap among investors.

To achieve the above objective, we have taken the first step and have started a podcast series where we aim at bringing to you the wisdom and insights from the best minds in the industry.


S.N Part Title Question Time in (h:m:s)
1 Introduction Introduction [0:00 - 2:05]
2 Career Decision for Stock Market Thought of engineering but realized that it is not in my interest and perused BBA. Got fascinated by the stock market and father's investments. Followed whatever I used to do. Eventually after BBA itself I decided that I will make my career in Stock markets. [2:06 - 5:30]
3 Right time to launch PMS at CONCEPT Wanted to be a research analyst after MBA. Applied at CONCEPT Securities for the job and got selected. Bull run from 2006 - 2008 made us feel we know everything but then 2008 crises hit the market. Goal was to not keep CONCEPT limited up to brokerage, so applied for PMS and also got the license in 2008. Crises didn't let us start the PMS right away. In July 2009, we thought it was the right time to pitch PMS and we started our journey from there on. [6:13 - 8:36]
4 Company Ethics CONCEPT always had a very ethical culture. Scaling up in a legitimate way is always the best way. [9:10 - 10:30]
5 Responsibility of Fund Manager Had only 3 years on work experience before I was offered the responsibility of a fund manager. I figured out that people have made money by buying good business and holding them for a long time and decided to go ahead with the same. Then we came up with legend, where we keep a 60:40 large-cap to mid-cap ratio. Marvel is completely opposite of Legend where we invert the ratio to 60:40 mid-cap to large-cap. [10:55 - 13:35]
6 My Philosophy and Focus Initially my philosophy was highly influenced by my investment gurus. Then I started altering it with my experience. My philosophy focuses on four aspects 1) External Opportunity, 2) Business, 3) Management, 4) Valuations. [14:07 - 22:05]
7 New Investment Idea and Confidence Ideas can come from anywhere and I also believe that you should be a shameless cloner. It is very important to keep our eyes and ears open. We started from a very small team and went on to build a strong team slowly. Confidence to invest in the company comes gradually and we like to feel confident before we choose to buy. [22:51 - 27:08]
8 How stocks gain allocation in our Portfolio? My experience has taught me that buying the desired quantities at one go is not the best of ideas. Initially if we like a company, we buy a small quantity and gradually build further positions if we feel comfortable. A top position in our portfolio has graduated to that level. [28:27 - 29:58]
9 The Process of Tracking Stocks Tracking is very important but tracking should not push you to change your portfolio again and again. You should try to understand and analyze the situation before reacting. Quarterly results, management interviews and calls become a very important part of the tracking process. We also attend analysts meet and AGMs' if we feel necessary. Transparency has substantially gone up these days. [30:27 - 33:25]
10 The Decision on Concentrating Portfolio Started with good diversification and we went on going concentrated as we gained experience. I believe I should go to 20-22 stocks. I never go highly concentrated on a single stock. If that stock graduated and becomes a high allocation, I will not trim if I am confident, but initially we never go highly concentrated. [35:00 - 37:00]
11 Success and Failure in Journey I have always been straight forward with my failures because a person who takes risks is bound to make mistakes. Mistakes of omission are Eicher Motors and Bajaj Finance I did this mistakes because valuations were not giving comfort. Mistakes of commission are TATA Motors DVR, Rain Industries and Sintex Industries. Mistakes are the part of the game but the main thing is allocation and we are still on the pitch. Success Stories - Titan, NATCO Pharma, Page Industries. [38:02 - 49:57]
12 Election and Portfolio Decision If we go by the data, market has always given positive returns in the fiscal year after elections since 1980, except only 1999. Reactions immediately after elections are very violent. Efficient government can always take bold decisions. Elections might play a part in the short run but in the long run fundamentals of the company is something that matters. [50:48 - 54:59]
13 Different Industries I am very bullish on corporate banks. Corporate banks because the introduction of NCLT has started to prove very fruitful for them as big NPA loans will come back and start making their balance sheets strong. Liability franchise and CASA ratio of these banks are great, which is the result of people's trust and trust cannot be built in a short span of time. Credit growth going forward is expected to increase. Another sector I am very bullish on, are aspirational consumption industries like jewellery, liquor, etc. Increase in per capita income is highly going to benefit the aspiration sector. Another opportunity I see is select Pharma. Companies manufacturing special drugs will benefit the most as almost $100B worth of drugs are going off patent in next 5 years. Companies with a big pipeline of complex drugs can make a lot of money going forward. Sector where I am bearish on is Telecom, as the entry of Reliance Jio has disrupted the market and is making life very difficult for players like Airtel and Vodafone. I don't believe that one should avoid sectors as a whole. In my opinion, we should see stock specific things and simply try to avoid bad businesses especially with bad corporate governance. As the market now has started differentiating between good, bad and ugly stocks. [55:45 - 1:02:00]

Membership No.: BSE - 919 , NSE - 12035 MCX - 28950 , DP-CDSL 12044000 
SEBI Registration No. : DP-CDSL - IN-DP-177-2015, PMS - INP 000003013 
PMS Investwell :INP000006323
SEBI Single Registration Certificate BSE/NSE/MCX- CM/FO/CDS/Commodity Derivatives :INZ000168736
SEBI Research Analyst Registration :INH000002715
Concept Commodities Pvt Ltd SEBI Registration :INZ000012234