High order failure rate on this smallcase

About the smallcase

We discover nano cap companies with market cap of less than 500 crore which has an independent and credible board using our proprietary database and board scoring algorithms.

To learn more about our strategy, read more.

We score boards based on the reputation of the board members depending on their previous work history, educational qualifications and association with other companies using advanced AI/ML algorithms.

This is a systematic process where we generate proprietary data and apply tenets of behavioral finance like disposition effect, loss aversion, convenience yield.

The process is a mix of algorithmic and discretionary fundamental stock picking.

The process aims to use

  • Public disclosure data to calculate independence of boards based on their reputation, gender diversity, professional links etc as factors.
  • Look for consistency of sales growth, operating margins and tax payment history
  • Look for adjustments to earnings using accounting principles and one time adjustments
  • Seek out turnover in the board and reasons for the same

We expect these tiny companies to become mid sized companies compounding investor capital.

The portfolio is constructed sector neutral to NSE Smallcap Index, providing sector risk diversification.

DISCLAIMER: This portfolio is not available for US persons, including US citizens and residents. The portfolio represented herein is available only to Indian residents. For US persons, please refer to the LotusDew website: www.lotusdew.co   

Download key points of this smallcase

Live Performance vs 

Current value of ₹ 100 invested once
at launch

Sep 27, 2021

would be
Nanocap Champs
₹ 176.26
Equity Smallcap
₹ 116.53

Note: Live performance includes rebalances. It is a tool to communicate factual return information and should not be seen as advertisement or promotion.

Understand smallcase costs and returns

Understand smallcase costs and returns