Despite a flat return from the market in October when the BSE Sensex gained just 0.31 per cent, select portfolio managers for high net-worth investors managed to generate decent alpha despite a flat return from the market in October. The BSE Smallcap index declined 0.35 per cent, while the broader BSE Midcap index gained 0.10 per cent.
The data provided by PMS Bazaar showed that six schemes delivered over 5 per cent return to investors during the month. The most recent return from investors was provided by the PMS, led by the well-known investor Basant Maheshwari-led Basant Maheshwari Wealth Advisers Equity Fund. The strategy has generated an 89.26 per cent return over the past year until October 31. The scheme invests in a business with the predictability of earnings and sectors that have tailwinds.
Renaissance Opportunities Portfolio was up 8.05 per cent Agreya Capital Advisors LLP's Exposure Equity Index Strategy up 5.62 per cent Fort Capital Investment Advisory s Value Fund increased 5.59 per cent Invesco's Caterpillar up 5.57 per cent and Agreya Capital Advisors Index Multiplier up 5.15 per cent, among other major gainers in the list.
Invesco s Caterpillar, which invests in mid-cap stocks, held stocks like Tata Elxsi, Teamlease, Balkrishna Industries, Sundaram Fastener and Tata Motors in its portfolio.
In October, the domestic equity market was highly volatile due to weak global cues, stretched valuations and selling foreign institutional investors. After two consecutive months of inflows, FIIs outflows of 13,550 crore were seen. According to NSDL, their net inflows in equity stood at Rs 2083 crore and Rs 13,154 crore in August and September.
Sundaram Alternates Rising Star, Valentis Advisors Rising Star Opportunity, Sundaram Alternates PACE, Invesco s Dawn, Turtle Wealth's 212 Growth Mantra, Nippon India's Absolute Freedom and LIC MF's Value Equity also gained between 3.40 per cent and 4.50 per cent in other PMS schemes such as Sundaram Alternates Rising Star, Nippon India's Absolute Freedom and Nippon India Sundaram Alternates Rising Star held shares like Navin Fluorine, KSB, Tata Elxsi, Hatsun Agro, V-Mart Retail in its portfolio.
PMS are investment tools that offer customised portfolio management services to high net-worth investors. The minimum investment size of PMS is Rs 50 lakhs.
Saurabh Mukherjea's Little Champs gained 2.58 per cent, while Consistent Compounder declined a little over 0.86 per cent among other key strategies. First Global's India Super 50 and Indian Multi Asset also lost 1.14 per cent and 0.76 per cent. Sunil Singhania's Abakkus Emerging Opportunities Fund increased by 1.90 per cent and the Abakkus All Cap Fund fell by 0.30 per cent.
ASK Investment Managers Indian Entrepreneurship increased by 0.65 per cent last month, as the country's biggest PMS strategy in terms of asset under management.
The scheme holds companies like Aarti Industries, Bajaj Finserv, Divi s Labs, Bajaj Finance, Bajaj Finserv, PI Industries, TCS, Aarti Industries, Havells India and Astral, amongst others.
According to Saurabh Mukherjea, founder and chief investment officer, Marcellus Investment Managers told Businesstoday.in they do not do theme-based investing.
We focus on the handful of Indian companies that have clean accounting, rational capital allocation over the past ten years and dominant franchises with high entry barriers. He said that we invest in these companies and stay invested for several years with less than 10 per cent churn in our portfolios.