VISIBO ALPHA QUANT BASKET
by Visibo Capital
A high-risk, quant-screened model portfolio of 8-12 Indian stocks showing strong sales growth, rising promoter holding and price momentum, with rule-based stop-losses.
Investment Rationale
Some of the strongest stock moves begin when three things happen together: the business starts growing faster, the owners buy more shares, and the market starts to notice. This basket uses a fixed set of rules to find stocks where all three are happening, and a fixed set of exit rules to limit losses when they do not work out. Our analyst then reviews the shortlist against written rules (for example, excluding stocks under exchange surveillance and capping stocks per industry) before the portfolio is finalised.
What we look for
Sales growth
What we check: Sales grew more than 15% over the last quarter and are higher than a year ago.
Why it matters: Research shows that stocks with strong revenue surprises tend to keep doing well after results.
Promoter buying
What we check: Indian promoters raised their stake last quarter.
Why it matters: The people who know the company best are putting in more of their own money. Research shows insider buying, unlike selling, has predicted future returns.
Price strength
What we check: Price within 15% of its 52-week high.
Why it matters: Stocks near their 52-week high have historically tended to keep rising.
Buying interest
What we check: Volume-based buying pressure (OBV) is higher than a month ago.
Why it matters: Confirms that buyers, not sellers, are driving recent trading.
Size and liquidity
What we check: Market cap of at least ₹500 crore; more than ₹5 crore traded per day on average.
Why it matters: Helps make sure stocks can be bought and sold without large price impact.
How we manage risk
- Stop-loss: Each stock has a 15% stop-loss from its entry price.
- Protecting gains: If a stock rises more than 15%, we book part of the profit or move the stop-loss up to the entry price.
- Taking profits: We exit fully once a stock has gained more than 50%.
- Equal weights: Each stock starts at about the same weight, so no single stock dominates.
Key risks
- Very high volatility: Small, fast-moving stocks can rise or fall sharply. Individual stocks can fall far more than the 15% stop-loss if prices gap down, for example after results.
- Concentration: With only 8-12 stocks, one bad pick has a big effect on the portfolio.
- Momentum crashes: Momentum strategies have historically suffered sharp losses when markets rebound suddenly after a fall.
- Frequent trading: Stop-losses and profit-booking mean more trades, higher brokerage costs and short-term capital gains tax.
- Rules can stop working: A screen that worked in the past may not work in future market conditions.
- Following updates matters: Stop-loss and exit alerts must be acted on promptly. Delays can mean worse prices.
Get access for ₹2,500 / 3m
Subscribe NowAbout the Manager
Visibo Capital
SEBI Registration: INH000029999
Visibo Capital is a SEBI Registered Research Analyst firm with a dedicated Research Team specializing in unearthing high quality undervalued stocks. We focus on high-conviction ideas backed by disciplined, data-driven fundamental research and clear inflection catalysts.
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