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Kotak Institutional Equities - Strategy: On frogs, pigs, vultures (and apes)

Posted On: 2024-06-20 09:46:04 (Time Zone: IST)


We make a few standard disclaimers for viewers: (1) any resemblance to any occupation or practitioners of that occupation is totally coincidental and (2) no animals were harmed during the making of this content. A few egos may get bruised, but (1) the jungle is not a place for egos and (2) animals in a jungle know that there is only one king of the jungle (the jungle itself).

Frogs: Gala time in an ever-replenishing magical pond

The frogs are having a swell time, having discovered a magical pond that keeps replenishing itself. The pond seems to have overheated of late, visible in the bubbles in the water. However, the frogs are oblivious, as (1) their bodies have adjusted to the rising temperatures and (2) they have confidence about the pond cooling itself automatically. Some jungle observers blame a monthly plan of the pigs (more on them later) to dump cold, hard stuff in the pond's water (some technical jungle folks vaguely term it 'liquidity') for the anomalous behavior of the frogs (they are not jumping out of the boiling water).

Pigs: Rolling in lucre

The pigs are having a great time too. They are smug about the fact that the water in the pond is reaching higher and higher levels (all those bubbles in the water), but ignorant about the fact that the temperature of the water has reached extremely high levels. In fact, the pond's water could be at risk of turning into steam and disappearing altogether. However, they are too busy rolling in the lucre to pay heed to such a potential calamitous event, as they remain (1) largely ignorant about the rules of the jungle and (2) massively confident about their ability to siphon off the water from the pool at the right time before other animals and their fellow pigs do the same.

Vultures: Back in the sky, but nothing much to eat

The vultures are not having a great time. They have returned to this particular jungle in the hope of a huge feast, but they have been disappointed so far. The pigs continue to frolic and are far from giving up the ghost (their spirits are high, if anything), even as their bodies have gained enormous weight. The vultures had migrated to other jungles a couple of years ago, especially to one across a high and long mountain chain. However, that jungle is made for slim pickings, forcing some of them to return to this jungle.

Apes: Their usual nonsensical chattering has metamorphosed

Any description of the jungle would be incomplete without a discussion on the role of the apes. They sit in their usual arboreal hauteur, rarely descend to the floor of the jungle and drop overripe fruit periodically for other animals in the jungle. Other animals have learned to ignore these droppings, which has spurred the apes into fighting for existential relevance. Their chattering and nattering have reached unprecedented levels of late, and they have started to speak some unrecognizable language (it sounds like English but has only superlatives and no facts, figures and numbers). It seems like a new form of monkey business.


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