What is Rakesh Jhunjhunwala and Azim Premji's Blue Whale investment strategy
India's consumption story is the hottest theme for 19 marquee, closely tracked HNIs who together have Rs 17,500 crore invested in Dalal Street. Rakesh Jhunjhunwala, Nemish Shah, Radhakishan Damani, Azim Premji and Ashish Dhawan are among those who have 20-60% of their portfolio in consumer discretionary and staples. The strategy of these investors — referred to as blue whales in market parlance — is similar to Warren Buffett, who championed investing in firms that benefit from growing consumption.
And, by all accounts, they are reaping handsome returns. Enam Cofounder Nemish Shah has seen his investments in Asahi India, supplier of automotive glass, multiply 3.4 times in 3 years. Damani has seen his investment in cigarette maker VST Industries surge 13 times in 14 years.
"These ultra-rich investors have a good knack to gauge potential of companies and usually discover midcap and small-cap winners early," said Deepak Shenoy, CEO of Capitalmind, a financial analytics and research firm that tracks portfolios of blue whales. Companies are mandated to disclose names of shareholders holding over 1% equity. Ashutosh R Shyam takes a look at Capitalmind's findings from these disclosures.
And, by all accounts, they are reaping handsome returns. Enam Cofounder Nemish Shah has seen his investments in Asahi India, supplier of automotive glass, multiply 3.4 times in 3 years. Damani has seen his investment in cigarette maker VST Industries surge 13 times in 14 years.
"These ultra-rich investors have a good knack to gauge potential of companies and usually discover midcap and small-cap winners early," said Deepak Shenoy, CEO of Capitalmind, a financial analytics and research firm that tracks portfolios of blue whales. Companies are mandated to disclose names of shareholders holding over 1% equity. Ashutosh R Shyam takes a look at Capitalmind's findings from these disclosures.
