Strategy Series

Our articles specific to the six investment strategies we offer. Whether you invest with us or are looking to invest, these
articles can you give you an insight into why we make the decisions we make.

MeritorQ Advisory
MeritorQ: Profiting from the Dislocation in Indian Megacaps

Although India’s 20 most profitable listed companies (the ‘Megacaps’) account for around 50% of the profits generated by the BSE 500 companies, these Megacaps account for just 34% of the BSE500’s market cap (down from 41% a decade ago and 45% nearly two decades ago). Indian retail investors’ fascination with small caps seems to be […]

MeritorQ Advisory FEB 21 . 7 MIN READ
Rebalancing and the Value Effect
READ MORE
MeritorQ Advisory NOV 21 . 9 MIN READ
The Risks of Owning an Individual Stock
READ MORE
MeritorQ Advisory OCT 10 . 6 MIN READ
Why Fundamentals and Valuations Matter
READ MORE
MeritorQ Advisory

MeritorQ: Profiting from the Dislocation in Indian Megacaps

Although India’s 20 most profitable listed companies (the ‘Megacaps’) account for around 50% of the profits generated by the BSE 500 companies, these Megacaps account for just 34% of the BSE500’s market cap (down from 41% a decade ago and 45% nearly two decades ago). Indian retail investors’ fascination with small caps seems to be […]


Apr 19 . 6 MIN READ READ MORE
MeritorQ Advisory

Rebalancing and the Value Effect

In this newsletter, we quantify the contribution of rebalancing to overall returns by breaking down the portfolio returns into sub-components. We find that periodic rebalancing drives most of the returns of systematic relative value strategies. Selecting quality, undervalued companies, as we do in MeritorQ’s selection step, is effective only when the portfolio is regularly rebalanced. […]


Feb 21 . 7 MIN READ READ MORE
MeritorQ Advisory

The Risks of Owning an Individual Stock

The majority of the listed companies in India fail to beat the market cap weighted index. In this newsletter, we discuss why the odds are stacked against an individual investor owning a small set of stocks. Over a longer investment horizon, returns of benchmark indices as well as the net wealth created in stock markets […]


Nov 21 . 9 MIN READ READ MORE
MeritorQ Advisory

Why Fundamentals and Valuations Matter

MeritorQ’s strategy of picking high-quality undervalued companies delivers better risk adjusted returns by taking advantage of mispricing associated with erroneous investor expectation. Such a strategy also delivers positive excess returns (i.e., returns in excess of the benchmark, in this case the BSE 500) around earnings dates further reaffirming the mispricing hypothesis. In fact, a significant […]


Oct 10 . 6 MIN READ READ MORE

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