Annual Reports – Top 10 Non Promoter Shareholder Disclosures – A backdoor for Cloning Strategy

There are a set of Investors who love Cloning Smart Investors/Mutual Funds/ P-E Firms.

So every time a Dolly Khanna ( aka Rajeev Khanna ) , Derive Investments ( Radhakishan Damani ) , Rakesh Jhunjhunwala and many other individuals like Ashish Kacholia, Ashish Dhawan, Porinju etc are seen in a Bulk Deal or Shareholding disclosures the stocks tend to zoom as well as investors love to bet on smart investors.

You might want to google this - " Mohnish Pabrai on Cloning as an Investment Proces "

For an Indian context I know a good investor friend - Ashish Kila has made an amazing presentation on 4 C's of Investment Process - Cloning , Checklist , Capital Allocation, Checkout which has a nice detail on Cloning as an Investment Process.

You can follow Ashish on Twitter or his Blog ( if only he would write more )

Personally I do a lot of Cloning but prefer to clone smart individual value investors whom i have the privilege to talk with and also understand their thought process behind the investment. At times I do add a bit of Technical Analysis to get good entry points/momentum.

Now where do we get access to what smart Investors are buying

• Bulk Deals
• Shareholding Pattern Disclosures every quarter.
• Mutual Fund disclosures ( for MFs)

Now all these disclosures are only for 1% or more of equity.

The new norms allow you to dig more deep very quickly. Also given that we are getting into the Annual Report and AGM season its going to be interesting.

1. The new disclosure of Top 10 non promoter shareholders of a Company in the Annual Report gives you a good access to investors who may not hold 1% of equity in single names but are in the top shareholding.
2. Also if you are an Investor in the company you can write to the Company Secretary and ask for top 100 shareholders in the company. You can also access it at the AGM.

Lets take a simple example.

This is the pic from the NOCIL Annual Report

You can see a couple of smart investors.

Madhuri Kela ( is she wife of Madhusudan Kela ?)

Dolly Khanna.

So i could quickly see Lata Bhanshali in ISGEC Heavy or a Sumit Ashish Kacholia in Vinati Organics etc.

Now where can you get the annual reports.

• BSE/NSE Website.
• Sites like ReportJunction and ResearchBytes

So for example ResearchBytes has this section on the HomePage

Post seeing this you can go to the BSE/NSE site and download the Annual Report. ( got this tip from Neeraj Marathe recently to quickly see which annual reports have comeout. Do checkout his blog and his active twitter account)

2. Get the top 100 shareholders list from the Company.

Now one company for example - Styrolution Abs actually has put up the Top 100 Shareholders on the Website itself.

So if you believe in Cloning there will be a lot of such disclosures in the current Annual Reports. ( Although i would suggest to research the company also and not buy blindly )

Hope this has been helpful. If you do find some interesting names in particular companies do send me a mail on nooreshtech@analyseindia.com

Will try to cover such interesting tidbits in the QuickTwits section of our Android App - "Nooreshtech"

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For all investors this is a course i recommend which will; be done mainly by Puneet Khurana. I ll be speaking a bit on Techno Funda too.

The Investing Lab Workshop

Date:
25th  & 26th July 2015

Timings:9 am to 6 pm

Venue :

Hotel Karl Residency

36, Lallubhai Park Road, Andheri (W), Mumbai – 400 058. Maharastra, India.

Fees:
Rs 18000

Book Your Seat

https://www.instamojo.com/ProfPuneet009/the-investing-lab-mumbai-25th-and-26th-july-/