Upside AI

About

Wyridian has been registered with SEBI as a portfolio manager on February 27, 2018, bearing registration number INP000005953 to offer investment management, portfolio management, and advisory services to High Networth Individuals (HNIs), institutional clients, corporates and other permissible class of Investors. The Portfolio Manager conducts its business under the brand name of ‘Upside AI’. 

The Portfolio Manager was incorporated on December 11, 2017. Partners of the Portfolio Manager have had a long standing successful investing career, investing in listed and unlisted small and midsized companies in India across a diverse range of sectors.

Key staff

Kanika Agarrwal, CFA

Nikhil Surender Hooda, PhD 

Atanuu Agarrwal

Investment philosophy

The Portfolio Manager utilizes proprietary algorithms to generate model portfolios on a quarterly basis and therefore, the model portfolio is updated every quarter. The Securities in such quarterly portfolio are subsequently screened and evaluated qualitatively by the Portfolio Manager. A Client’s Portfolio will be based on the model portfolio suggested for the quarter in which the Capital Contribution is received.

Investment portfolio

The Portfolio Manager will invest in large, mid and small market capitalization companies(Upside Multicap) and in large cap and mid cap companies(Upside 250). The Portfolio Manager would typically invest in 10-35 stocks. No single stock would have exposure of over 15% at the time of buying.

The Portfolio Manager would invest in securities of companies that generally exhibit the following characteristics: 

  • an increasing addressable market opportunity;
  • qualified and experienced management & second line of management; 
  • ability to expand and defend its competitive moat;
  • potential to generate superior shareholder returns over long period of time;
  • high standards of corporate governance.

Investment approach:

Upside Multicap

Upside Multicap is size agnostic and buys stocks across market caps. The scheme typically ends up investing ~80% in mid and small caps. It will hold a diversified portfolio of ~10-25 companies.

  • No of stocks: 13
  • Median Market Cap(Rs Cr): 2300
  • 3year earnings growth: 5.5%
  • Return on equity: 11.6%
  • Consistent alpha over the benchmark 
  • Systemized Active: Follows standardized rules and keeps emotion out of investing 
  • Ability to deliver alpha with market level risk, i.e. similar drawdowns and deviation

Upside Top 250:

Upside Top 250 focuses on the top 250 companies in India by market cap and suggests a diversified portfolio of ~10-25 companies.

  • No of stocks: 11
  • 3year earnings growth: 13%
  • Return on equity: 17%
  • Product is to build a stable, long term portfolio of quality stocks 
  • Ability to deliver alpha with market level risk 
  • Comparable standard deviation and drawdown to index 
  • Annual churn 
  • Low cost

Analyst questions

1)What difference has AI and Machine Learning made for the Portfolio Manager in picking   stocks when compared to traditonal methods of stock selection?

                                                                                                                           

 By Prathamesh Chitroda

Peer review questions:

Are the algorithms trained on fundamental data, technical data?

Is there any maximum investment limit that your algorithms can currently handle?

                                                                                                                               

By Shweta Upadhyay

Author

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