Stoic Talks

Stoic Talks

S02E09: “Demystifying Factor Investing for Modern Markets” with Anish Teli

Anish Teli, a veteran in the Indian equity markets, has carved a unique niche through his firm, QED Capital Advisors LLP. With a belief system rooted in ‘Quod Erat Demonstrandum’ or ‘which is what had to be proven’, Teli’s firm is a testament to creating effective investment strategies driven by quant-based asset management principles​​.

QED’s investment philosophy is structured around a rule-based approach, adapting to market dynamics by blending quantitative analytics with human expertise. This ensures investments are safeguarded against risks while aligning with clients’ investment goals​​. Moreover, the firm adopts a satellite approach, combining the best of active and passive investment strategies, focusing on factor investing that includes Value, Momentum, Quality, etc​​.

Periodical rebalancing and overcoming behavioural gaps like herding, anchoring bias, confirmation bias, and disposition effect are crucial elements of QED’s strategy. These methods help in correcting pricing inefficiencies and irrational behaviours, narrowing the gap between potential and actual investor achievements​​​​.

Delving deeper into QED’s strategies, three distinct types emerge AlphaBets, Index Alpha, and Core Equity. AlphaBets consists of actively managed equities, chosen based on strict selection parameters, focusing on wealth creation while avoiding behavioural biases​​. Index Alpha, on the other hand, is a passively managed fund designed for long-term wealth generation, catering to specific investment horizons​​. Core Equity combines low volatility, momentum, and value/quality in a systematic manner, aiming to generate long-term capital growth from an actively managed portfolio of equities​​.

In essence, QED’s approach, under Teli’s leadership, embodies discipline and consistency, crucial for wealth generation. The firm’s portfolio management services ensure a systematic allocation across different strategies, combining growth and risk mitigation, to help clients achieve their financial goals​​.

In conclusion, Anish Teli’s journey in stock market and factor investing, as explored in the Stoic Talks podcast, presents a compelling narrative of strategic investment management, driven by a blend of quantitative analysis, disciplined approaches, and a deep understanding of market dynamics.

We wholeheartedly thank DSP Mutual Fund for collaborating with us for this particular episode of Stoic Talks.

Podcast Record Date: 01.11.2023

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Profile:

Anish Teli is the MD of the QED Capital Advisors LLP.

Transcription:

Notes:

  • Guest Intro [0:19]
  • Fundamentals to Factors: The Investing Evolution [0:28]
  • Anish’s initial Investing Process and Strategies [15:38]
  • Insightful Integration: Quantifying Qualitative Nuances in Investing [20:54]
  • Portfolio Powerplay: Core Equity & AlphaBets Approach [30:29] 
  • Significance of Conservative Formula [41:16]
  • Mastering Conservative Strategies in the Indian Market [42:17] 
  • Allocation strategy and correlation between two different offerings [48:24]
  • Portfolio allocation, Factor Timing and Cash position [1:02:12]
  • Decoding the AlphaBets Strategy [1:06:46]
  • Decoding the Core Equity Strategy [1:14:56]
  • Value Factor’s Impact and Strategy [1:17:50]
  • Scientific ways of doing backtest [1:32:37]
  • How to deal with the crowded market without slippages? [1:45:35]
  • Why are Mutual Funds not following the Conservative Formula? [1:52:15]
  • How to fill the behavioural gap in the bear market? [2:00:34]
  • Resources to learn about Factor Investing [2:08:32]

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