These 14 PMS schemes delivered over 70% return to rich investors in 1 year; now own these stocks

In a race to generate robust alpha, at least 14 portfolio management schemes from across the categories including small- and mid-cap, multicap, flexi-cap and large- & mid-cap delivered over 70% return to high-net-worth individuals (HNI) in the past year.

Meanwhile, the benchmark BSE Sensex rose 27% from September 2023 to August 2024. On the other hand, BSE MidCap and BSE SmallCap indices jumped 57% and 50%, respectively, during the same period. Presently, domestic equity markets are hovering at record-high levels driven by earnings growth and robust inflows by domestic investors.

Going ahead, US elections and Fed direction on interest rates are the biggest events which could impact the market sentimentally in the short run.

With a gain of 99.29% in the past 1 year, Wallfort PMS and Advisory Services LLP’s Diversified Fund emerged as the top gainer on the list collated by PMS Bazaar. The strategy has delivered a 31.16% annualised return to investors since its inception in November 2018. Green Lantern Capital LLP’s Growth Fund (up 98%) and Carnelian Asset Management and Advisors’ YNG Strategy (up 91.35%) emerged as the next biggest gainers. Data showed that Carnelian Asset Management and Advisors’ YNG Strategy held shares such as Hindustan Aeronautics, Power Finance Corporation, Bajaj Auto, ITC and CESC as of August 31, 2024.

Data further highlighted that Stallion Asset’s Core Fund, Motilal Oswal Asset Management Company’s Multifactor Equity, Moat Financial Services’ UpperCrust Wealth Fund, Asit C Mehta Investment Intermediates’ ACE-Multicap and Green Lantern Capital LLP’s Alpha Fund also gained somewhere between 73% to 84% in the past 12 months.

Motilal Oswal Asset Management Company’s Multifactor Equity held Oil India, REC, Petronet LNG, NMDC and Zydus Lifesciences in its portfolio as of August 31, data available with PMS Bazaar showed. On the other hand, Zensar Technologies, Mphasis, Tech Mahindra and Infosys were among the top holdings of Asit C Mehta Investment Intermediates’ ACE-Multicap. The PMS strategy also held 3.01% cash amid the ongoing rally in the domestic equity markets.

Accuracap's Dynamo also delivered 72.63% return in the last 1 year till August 31, 2024. Equitree Capital Advisors' Emerging Opportunities (up 72.12%), Wryght Research and Capital’s Factor Fund (up 71.63%), Torus Oro Portfolio Management' All Weather Portfolio (up 71.30%), Asit C Mehta Investment Intermediates' ACE-Midcap (up 70.40%) and Care Portfolio Managers' Large and Midcap Strategy (up 70%) stood among other major alpha generators. Coromandel International, Hindalco Industries, UltraTech Cement, Zydus Lifesciences and ONGC were among the major holdings of Care Portfolio Managers' Large and Midcap Strategy as of August 31, 2024.

Sharing his views on Equitree Capital Advisors' Emerging Opportunities, Pawan Bharaddia, Co-founder told Business Today that they look to invest in high-quality businesses at a reasonable valuation. “We are focused on buying businesses at an inflection point for high growth- generally 25%+ CAGR during our investment holding period. Being early investors in these companies enables us to buy these businesses much below their intrinsic value leaving enough room for re-rating as the broader markets take note of these high-growth companies.”

“Our focus has been on the manufacturing, engineering, infra ancillaries and select consumer plays,” Bharaddia said.
When asked which sectors might deliver strong returns in the near future, Rajesh Pherwani, Founder of Valcreate Investment, said, “Over the next 1-2 years, we expect solid growth in sectors such as home improvement, housing finance, select financial segments, engineering companies, road infrastructure, generics pharma, contract manufacturing, agrochemicals, specialty chemicals and parts of auto ancillaries. We also favour defence at reasonable valuations.”