Over 50% returns in just 6 months! These 8 portfolio managers made solid money for rich investors

Amid the ongoing rally in the domestic equity markets, at least eight money managers of high-net-worth individuals (HNIs) managed to deliver solid alpha to their investors in the past six months till August 31. Data showed that Invasset LLP’s Grow Pro Max Fund strategy delivered a 71.41 per cent return to investors in the past six months when the benchmark equity index BSE Sensex gained 9.95 per cent.

On the other hand, the BSE SmallCap and BSE MidCap indices advanced 29 per cent and 36 per cent, respectively, between February 28 and August 31.

Other multi-cap strategies including Samvitti Capital’s PMS Active Alpha Multicap and Investsavvy Portfolio Management’s Alpha Fund also delivered 67.45 per cent and 61.23 per cent, respectively, return to investors in the last six months till August 31, according to data collated by PMS Bazaar.

Sharing his view on the outperformance of Samvitti Capital’s PMS Active Alpha Multicap, Prabhakar Kudva, Director and Portfolio Manager, Samvitti Capital said, “We’ve worked on building models that help us identify the sectors and businesses with significant earnings tailwinds. We were able to identify several sectors like power, PSU banks and defence primarily ahead of the market and that helped us outperform over this period.”

“Also, our faith in the underlying India story allowed us to take the bets earlier than the rest of the market. We hope to continue the same but the pace of the gains is unlikely to be repeated in the next six months as these gains were on the back of a rally off bear market lows,” Kudva added.

Smallcap strategy of Equitree Capital Advisors’ Emerging Opportunities is next on the list. The strategy jumped 60.60 per cent in the last six months. It was followed by the small and midcap Aggressive strategy of Badjate Stock & Shares (up 58.86 per cent).

Pawan Bharadia, Managing Director, Equitree Capital Advisors said, “We focus on being early investors in to niche small businesses that are leaders in their chosen segments, exhibit significant scalability potential and have a huge operating leverage being played out. The returns that one is seeing in the portfolio are from companies that we have been holding for over 3-4 years, many of which are maturing and are poised for high growth trajectory going ahead.”

ithought Financial Consulting LLP’s Vrddhi, Ambit Global Private Client’s Alpha Growth and Shepherd’s Hill Financial Advisors LLP’s Value Magno also gained 57.03 per cent, 52.10 per cent and 51.49 per cent, respectively, during the same period.

Commenting on Vrddhi, Shyam Sekhar of ithought said, "We were well positioned going into the upcycle by being in the right sectors as well as companies. We don’t target any returns, our focus is on risk control. The risk-reward at the beginning of the calendar year was very attractive with many strong companies as a result we were able to add to our existing names.”

“However over the last few months, the opportunity set for our style of investing (market leaders, strong balance sheets, growth visibility available at attractive valuations) has visibly reduced, consequently the allocations have been the lowest since the last 2 years,” he said. 

Sekhar further added that no one knows what will happen in the next 3-6-12 months. At the moment, opportunities to invest sensibly are not that many, usually such times leads to people lowering their threshold to invest and that subsequently leads to mistakes.

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