Fabulous-15 Update

FABULOUS-15 is showing outperformance and we would take profits in GIC HSG FIN at Rs 122 and now we hold 70% cash once again. Total returns if we take into consideration the interest on 70% actual returns are nearly 7% (Annualized). We had a negative view on markets and still we maintain it so we decided to invest just 30% from day one itself but even if we had invested equally in all stocks the returns would have been 5.47% (Annualized). This list we would continue to hold and churn it when opportunities arise. GIC HSG has returned 33% and its target of Rs 150 would also be achieved soon but with Nifty at 2 and half year high caution is advised and more cash we hold that is better.
Many small and mid cap stocks have zoomed in recent past but reaction would be very high in that sector with even a minor negative surprise in results, so take profits in small stocks regularly if you hold them.

FABULOUS-15 TRACKER (Prices in Rs)
Stock Name	Reco Price	CMP	Target	% Weight	% Returns	Action
3IINFOTECH	87	65	118	2	-25	Hold
ADHUNIK MET	110	118	152	2	7	Hold
EKC	156	137	189	2	-12	Hold
EMCO	91	80	130	2	-12	Hold
GLENMARK	278	279	350	2	0	Hold
GSPL	98	101	125	2	3	Hold
GUJ NRE COKE	72	64	110	2	-11	Hold
IFCI	54	58	75	2	7	Hold
MRPL	78	84	100	2	8	Hold
NEYVELILIG	152	160	196	2	5	Hold
POWERGRID	109	101	141	2	-7	Hold
SUZLON	75	60	140	4	-19	Hold
JUBILANT	325	364	450	2	12	Hold
FSL	30	28	38	2	-7	Hold
GIC HOUSING	92	122	150	2	33	BP
GREAVES COT	286	338	352	2	18	BP
SKUMAR	41	49	70	2	20	BP
ABG SHIP	210	270	270	2	29	BP
Total				30	0.57
Add : Interest @ 6% for 7 months					3.50
Total % Returns					4.07
Annualized Returns %					6.98

• Be just 30% invested and don't do averaging for the sake of that.
• Don't average if 30% dip is not seen after your purchase, averaging should be considered time-wise also.
• At least 2-3 months must pass before you buy again in a dip.
• As we hold a view that Sensex below 13000 in 2010 can be possible so avoid aggressively and leveraged positions.
• This market is a bear market which can cut both ways, it is always difficult to mint money in such market and it is better to be an investor and accumulate.
• Being correct in market is difficult so we have invested 30% so that in case of market rally we don't miss the opportunities.