Mi MT Allcap completes 5 glorious years

Mi MT Allcap has successfully completed 5 glorious years of exceptional performance in the markets !

Use code ALLCAP25 to avail a flat 25% discount on your annual subscription of the Mi MT Allcap

Note : Valid only till end of 26th Nov 2023 (Sunday)

Mi MT Allcap in a nutshell

Mi MT Allcap is an absolute momentum based core strategy designed for your long-term financial goals. This strategy follows a medium-term risk approach that is primarily built to perform well in all market conditions – be it flat, down, or up and covers all subsegments of the market, including large cap, mid cap, and small caps (criteria being all stocks above 1000 cr market cap).

The strategy organically ensures survival of the fittest where winners thrive, while losers are dropped early. The most important USP is the strategy’s ability to dynamically move to cash whenever the markets experience a steep decline.

Let’s take a journey through the last five years and see how the strategy has performed in different phases.

Phase 1: November 2018 – February 2020

In the initial phase, Mi MT Allcap underperformed for a brief period but made a strong comeback towards the end. Overall, it managed to largely meet the benchmark, achieving a return of 12% in this 14-month period.

Phase 2: February 2020 – November 2020

This phase was marked by the COVID-19 pandemic, which caused a significant market correction. Mi MT Allcap, however, corrected much less than the underlying benchmark due to its dynamic cash allocation strategy. As the market recovered post-May 2020, the strategy outperformed the benchmark with an impressive return of 24.6% compared to just 1% by the benchmark.

Phase 3: November 2020 – October 2021

This phase witnessed rapid market growth, and the strategy truly shined. The strategy achieved a remarkable return of 131% compared to the benchmark’s 56%. The pace at which it performed during this period was exceptional.

Phase 4: October 2021 – Nov 2023

Currently, we are in a consolidation phase, and while the strategy has performed well, it has not done exceptionally well so far primarily due to the lack of sustained uptrends. The phase is closing at a return of 22% compared to the benchmark’s 11%.

Looking at the overall five-year performance, it is evident that there were phases where Mi MT Allcap performed in line with the market, phases where it outperformed even during market downturns, phases of rapid outperformance, and phases of market-matching returns.

However, the power of compounding over time has resulted in impressive overall returns. If someone had invested ₹100, their investment would now be almost at ₹400 (4x gains), compared to the benchmark’s ₹197 (2x gains). This is a substantial beat over a five-year period.

Let us now dive into the performance metrics of the strategy

Basic Metrics

Continuous CAGR since launch

The CAGR reached nearly 50% in 2021 and has since stabilized around 30%, outperforming the benchmark’s 14.6%.

3 Year Rolling CAGR

The strategy has consistently achieved CAGR in the range of 30% to 50%, which is phenomenal compared to the benchmark whose CAGR has ranged between 10% to 30%.

Biggest Winners & Losers in the last 5 years

Two important points to highlight would be ;

– The sheer size of the winners compared to that of the losers. You can see that the biggest winners are in the range of 350% to 480% while the biggest losers are pretty low in the range of 22% to 40%.

– The holding period on the winners are also on the high side between 378 days and as long as 528 days while the losers holding period ranges between as low as 7 days to 91 days.