Persistence Capital

Persistence Capital Fund I is a scheme of Persistence Capital Trust managed by Persistence Long Term Value LLP

SEBI Registration No.- IN/AIF3/24-25/1501

[Persistence Capital @persistencecap]

@safiranand Agreed. A fair amount of liquidity in the mkt is currently locked up in Jio IPO bids. As allocations get finalized, that liquidity will likely provide NT buying support. It’s always the darkest before the dawn.

[ishmohit @ishmohit1]

Markets so bad that the tax debate has changed from-

Should ltcg be cut to should I do tax loss harvesting 5 months earlier?

This is how sentimental bottoms are formed.

Topped up more into strong conviction names from Pharma, chemicals, niche cap goods and power sector

[Persistence Capital @persistencecap]

@Iamsamirarora @nooreshtech This is as of today’s close. India also narrow but no 36% YTD rally (yet - hope is how we get by 😅).

[Persistence Capital @persistencecap]

Can we just have a normal year for a change? 😅

[Marathon Fusion @MarathonFusion]

Last month, we demonstrated high-rate alchemy: turning mercury into real, stable gold, beating CERN’s record by a factor of 10.

Last week, we enriched isotopes in the world’s most powerful plasma centrifuge, beating the Soviet record that stood for 40 years.

Now, we’re building a fusion reactor in San Francisco to achieve record power density.

[Persistence Capital @persistencecap]

As the image below indicates, it has been a painful few months for Indian equities.

Across market cap bands, there are very few stocks that are down less than 10% from ATH. If you are seeing a large drawdown in your portfolio, do not worry. Even in businesses whose market cap exceeds INR 50k cr, 69% of companies in this universe have witnessed at least a 20% drawdown. 83% of businesses whose market cap is INR 1-5k cr have drawn down 20% or more from ATH.

All of this to say that you are not alone. The pain is broad-based.

Stick to businesses that show attractive growth rates, have strong business models, cater to end markets with long growth runway and are backed by ethical promoters. There have been many such drawdowns in the past but if you've bought businesses that demonstrate the above characteristics AT SENSIBLE PRICES, everything will work out. This too shall pass.

[Persistence Capital @persistencecap]

Couldn’t agree more. Small caps done well can deliver phenomenal irr over long term even without leverage. The long term bit is key. If you add leverage, you may not be able to stay the course. Tread with caution. Don’t get too greedy.

[ishmohit @ishmohit1]

Fear amongst people+MTF positions= Hyper volatility in small and mid cap names

Try being a business analyst in such situations. Many businesses with strong results have been punished due to the above ⬆️

[Persistence Capital @persistencecap]

It’s getting ugly. Stay safe out there and trust the process. This too shall pass

[Tejas Bansal | Equity Insights Elite @EquityInsightss]

Here's what the current market breadth looks like!

[Charly Wargnier ♨️ @DataChaz]

a bride just gifted her husband a $12,000 GPU.

and they say romance is dead.

[Persistence Capital @persistencecap]

@AnubhavKaul2 Yes, we need to spend time on it :)

[Persistence Capital @persistencecap]

The perfect Persistence investment is a mean reversion setup with margin of safety that through accelerating fundamentals becomes a momentum favorite. Hit us with your best idea.

[Persistence Capital @persistencecap]

@anon10019442298 lol

[Persistence Capital @persistencecap]

Super interesting development. Time to check 3 data points:
1. How do CSB TTM PB multiples compare vs IDBI?
2. At what multiples were recent banking transactions done - Blackstone / federal bank, Warburg / idfc first and federal / Jana? How do these multiples compare vs CSB?
3. Did these transactions involve a change in control or were these minority stakes?

Disclosure: invested and biased. Please do your own due diligence and don’t rely on X for stock tips!

[Persistence Capital @persistencecap]

(12/n) Is the market worried that CSB will merge with IDBI Bank? Possibly as Fairfax and Emirates Bank are the last 2 bidders left. However, management suggests they have limited interest in the acquisition and the acquisition already appears to be priced in. In fact, IDBI trades at ~1.6x TTM PB

[Persistence Capital @persistencecap]

There are pockets of froth in small caps AND in large caps.

And there are also pockets of value in both categories as well.

Enough ink has been spilt on this debate in Sep ‘24. The last 2 years have shown that unless you manage multiple billion dollars, trying to catch the large cap bottom or call the small cap top is a waste of time.

Instead, investors should focus on setups that demonstrate the holy trifecta (assuming CG etc is good):

Accelerating top line

Margin expansion

Valuation comfort

This is what ultimately drives shareholder outcomes. Now back to earnings season 🫡

[Persistence Capital @persistencecap]

X is great because of this. People sharing to learn and get better. We need more of this.

[Razor Capital @ThePatientCapi1]

Inspired by @persistencecap @9onecapital @SamitVartak @amitmantri @2point2capital @MGSolidarity and their efforts to discuss ideas in depth on X, wanted to share our thesis on PVR INOX. 🧵

Disclaimer: may hold a position. Academic discussion only, not investment advice.

[Persistence Capital @persistencecap]

@Japreet86130619 We don’t advocate indexing. You still have to be invested in the right businesses at the right price at the right time. Simple not easy.

[Persistence Capital @persistencecap]

Time in the mkt > Timing the mkt

[Varinder Bansal 🇮🇳 @vbomkara]

🤞

[Persistence Capital @persistencecap]

Things that don’t stand to scrutiny:

1. Countries such as China, South Korea have very successful diaspora as well. We don’t see them charging capital gains tax just because the diaspora has succeeded overseas and now has money to invest in the home country. In fact, not taxing FCNR deposits (in addition to fx hedges) is what made the recent deposit mobilization successful. If you want folks overseas to invest in your country, make the terms competitive with other countries.

2. Could not agree more. Why take 000s of crores out of the country only to bring them back into the stock mkt. Even if there are bad actors, why should legitimate investors such as endowments, sovereign wealth funds pay the price? Other countries have capital gains tax on domestic investors but not on foreigners. How do they solve KYC and why can’t we? If we dock legitimate actors instead of solving the root issue, why should they invest in our country over another one?

I never mentioned taxes on domestic investors so no point debating on something we agree upon. KYC, STT would be a great place to start. Ultimately, we want what’s best for the country and having a tax jurisdiction that is globally competitive doesn’t seem like a controversial ask.

[Persistence Capital @persistencecap]

Why do advanced economies such as the USA charge higher capital gains tax on domestic capital but no capital gains tax on offshore investors? Genuinely curious to understand why we are one of the few economies that taxes foreign investors

[Rajeev Mantri @RMantri]

Another day, another bunch of dumb asses from stock trading world ranting against taxes and attacking the Finance Minister because their portfolios are in the red.

Imposing taxes on listed equities has been one of the most crucial and important tax policy changes in the last twenty years. You want people to allocate capital based on economic criteria, not on tax criteria.

Why would anybody do any business or take any risk, if you can sit invested in established, listed giants with zero taxes? Anybody working in the real economy is an idiot. @nsitharamanoffc @FinMinIndia

The virulent and vitriolic jamaat of stock market punters now venting their spleen online is beneath contempt.

[Persistence Capital @persistencecap]

“Most textbooks advise asset liability match so your assets and liabilities have to match but money is made by doing an asset liability mismatch.”

That was August 2017, the year the best-known housing finance stocks nearly doubled. They went on to fall 92% from their peak.

By the time everyone is talking about a theme, most of the money has been made. We went back over the sixteen that led the Indian market between 2015 and 2023, and looked at what happened if you bought each one once it was popular. For a year or so, it worked.

Three years in, 13 of the 16 had lagged the NSE500, and the typical theme had fallen 40% from its peak along the way. We’ve pitched a few of these names at the wrong time ourselves. The deck ends with five questions we ask before buying into a hot theme. The one for this platform: would we invest in this theme if it was not popular on X?

The full deck is accessible in .pdf format here: https://t.co/yGdt3uWFIP