Here’s how PMSes made money for ultra-rich investors in October

Select portfolio managers for high net-worth investors (HNI) managed to generate decent alpha despite a flat return delivered by the market in October when the BSE Sensex gained just 0.31 per cent during the month. The broader BSE Midcap index gained 0.10 per cent, while the BSE Smallcap index declined 0.35 per cent.

Data available with PMS Bazaar showed that six schemes delivered over 5 per cent return to investors during the month. PMS managed by well-known investor Basant Maheshwari-led Basant Maheshwari Wealth Advisers Equity Fund delivered the most at 10.31 per cent return to investors last month. The strategy has generated an 89.26 per cent return during the past one year till October 31. The scheme invests in a business with the predictability of earnings and sectors that have tailwinds.
 
Renaissance Opportunities Portfolio (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 (up 5.59 per cent), Invesco’s Caterpillar (up 5.57 per cent) and Agreya Capital Advisors’ Index Multiplier (up 5.15 per cent) stood among other major gainers in the list.
 
Invesco’s Caterpillar, which invests in midcap stocks, held stocks like Tata Elxsi, Teamlease, Balkrishna Industries, Sundaram Fastener and Tata Motors in its portfolio.
 
Overall, the domestic equity market stood highly volatile in October on the back of weak global cues, stretched valuations and selling by foreign institutional investors. FIIs outflows of Rs 13,550 crore were seen after two consecutive months of inflows. Their net inflows in equities stood at Rs 2083 crore and Rs 13,154 crore in August and September, according to NSDL.
 
Other PMS schemes, such as 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. 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, and minimum investment ticket-size of PMS is Rs 50 lakhs.
 
Among the other key strategies, Saurabh Mukherjea’s Little Champs gained 2.58 per cent, while Consistent Compounder declined marginally 0.86 per cent. First Global’s India Super 50 and Indian Multi Asset also lost 1.14 per cent and 0.76 per cent. On the other hand, Sunil Singhania’s Abakkus Emerging Opportunities Fund gained 1.90 per cent and Abakkus All Cap Fund inched lower by 0.30 per cent.

On the other hand, the country’s biggest PMS strategy, in terms of asset under management, ASK Investment Managers Indian Entrepreneurship gained 0.65 per cent last month.
 
The scheme holds companies like Bajaj Finance, Bajaj Finserv, Divi’s Labs, PI Industries, TCS, Aarti Industries, Havells India and Astral, among others.
 
Commenting on his style of investing, Saurabh Mukherjea, founder and chief investment officer, Marcellus Investment Managers told Businesstoday.in that they do not do theme-based investing.

“We focus on the handful of Indian companies which have clean accounting, rational capital allocation over the past ten years and dominant franchises with high entry barriers. We invest in these companies and stay invested for several years with less than 10 per cent churn in our portfolios,” he said.

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