Coattail Investing shattered: Those who picked Dolly Khanna, Kacholia, Goel stocks lost up to 20%

The ongoing selloff on Dalal Street, which began on August 31, has caused steep value erosion of up to 20 per cent in the portfolios of renowned investors such as Anil Kumar Goel, Dolly Khanna and Ashish Kacholia.

BSE Midcap and Smallcap indices have slipped 15 per cent and 18 per cent, respectively, between August 31 and October 4, while BSE Sensex lost 9 per cent.

Those who tried to imitate the portfolios of these investors – eminently referred to as coattail investing – must have taken a good knock as well. Return calculations for these portfolios were done on the basis of shareholding data available as of June 30, 2018.


Here’s how your portfolio would have performed had you copied any of these names in the market during the quarter:

Anil Kumar Goel
Goel’s portfolio saw nearly 10 per cent value erosion during August 31 and October 4. Of the 33 stocks, 26 dragged the portfolio by up to 31 per cent. Shares of Samtek Fashions, Shivam Autotech, Thirumalai Chemicals, Vardhman Holdings, IG Petrochemicals and KG Denim slipped over 20 per cent in the recent selloff.

Among others, Indsil Hydro Power, Vardhman Special Steels, Amarjothi Spinning Mills, Sanghvi Movers, Panama Petrochem, Sarla Performance, Srikalahasthi Pipes and South India Paper dipped between 15 per cent and 20 per cent.

Srikalahasthi Pipes, Sarla Performance Fibers, Vardhman Holdings, KG Denim, Shivan Autotech, Majestic Auto, IG Petrochemicals, TCPL Packaging and Thirumalai Chemicals lost between 12 per cent and 27 per cent during the July-September period.

On the other hand, going against the wind Dhampur Sugar (up 36 per cent), Dwarikesh Sugar (up 22 per cent), Avadh Sugar (up 16 per cent), Uttam Sugar (up 16 per cent) and Punjab Alkalies (up 6 per cent) did some damage control and helped cap the downside.

Ashish Kacholia
Kacholia was holding over 20 stocks in his portfolio as of June 30, 2018. Most of his stocks, including Vadilal Industries, CHD Developers, Vishnu Chemicals, V2 Retail, APL Apollo Tubes, Parag Milk Foods and KPIT Technologies, have tumbled up to 32 per cent since August 31. Majesco, Pokarna, Nocil, Khadim India and Ester Industries slipped between 7 per cent and 20 per cent. Poly Medicure (up 0.60 per cent) was still in the positive territory at the time of filing of this report. Overall, his portfolio value dipped 19 per cent between August 31 and October 4.

Dolly Khanna
Not a single stock in Dolly Khanna’s portfolio moved northward during this period. Radico Khaitan plunged the most at 31 per cent, followed by Butterfly Gandhimathi Appliances (down 28 per cent), Manappuram Finance (down 27 per cent), Asian Granito (down 27 per cent) and RSWM (down 25 per cent). Other stocks including Ruchira Papers, Selan Exploration, Srikalahasthi Pipes, Nilkamlal, PPAP Automotive and RSWM also dipped between 5 per cent and 25 per cent. Khanna’s portfolio value dropped 20 per cent between August 31 and October 4.