The majority of portfolio managers for high net-worth investors managed to deliver a solid return to investors in 2021 when the benchmark equity index BSE Sensex gained 22 per cent. Broader indices, the BSE Smallcap and BSE Midcap, surged 63 per cent and 39 per cent, respectively.
Data collated by PMS Bazaar showed that at least 140 PMS schemes outpaced the BSE Sensex in 2021. With a gain of 115.54 per cent, Green Portfolio’s Super 30 emerged as the top strategy in the list. The objective of Super 30 is to provide a very high reward in a short period.
Portfolio management services, or PMS, is an investment management service offered by the qualified portfolio managers. The minimum ticket size for PMS investment is Rs 50 lakh in India.
“High risks come with high returns. We follow an aggressive risk mitigation strategy where we avoid exposure in scripts with unnecessary risks. This scheme invests in businesses where convincing evidence of a turnaround is visible. This turnaround will lead to a spike in performance due to a special situation such as a change in key management, merger and acquisitions (M&A), deleveraging, change in industry dynamics domestically/ globally etc.," Green Portfolio told BusinessToday.In last month.
Super 30 held stocks like Bharat Petroleum Corporation Limited (BPCL), Nahar Spinning, Rama Phosphate, Rubfila International and Excel Industries, among others, in November.
Other small-cap and mid-cap strategies such as Valentis Advisors’ Rising Star Opportunity (up 96.42 per cent), Right Horizons’ Minerva India Under Served (up 92.20 per cent) and Roha Asset Managers’ Emerging Champions (up 91.18 per cent) stood among the next major gainers in the list.
Minerva India Under Served focuses on businesses within the most underpenetrated categories. It held companies like JK Paper, Steel Strip Wheels, Fiem Industries, PVR, Dr Lal Pathlabs in its portfolio in October last year.
Overall, market sentiment stood in favour of bulls last year, fuelled in part by the gush of liquidity and robust inflows by institutional investors. Commenting on the broader markets, Sunil Nyati, managing director, Swastika Investmart said, “We are in a structural bull market where mid-cap and small-cap stocks tend to outperform and I believe this bull market is likely to continue for at least the next 2-3 years. Therefore, outperformance of mid-cap and small-cap stocks will also continue to do well, however, investors have to be very selective from here.”
Green Lantern Capital LLP’s Growth Fund, Negen Capital’s Special Situations and Technology Fund, Sageone’s Small and Microcap, Abakkus Asset Managers’ Abakkus Emerging Opportunities Fund, Carnelian Asset Advisors Shift Strategy, Right Horizon’s Super Value, Arihant AMC’s Electrum Laureate Portfolio, Equitree Capital Advisors Emerging Opportunities, Aequitas Investment Consultancy’s India Opportunities Products and Care Portfolio Managers’ Growth Plus Value also gained between 75 per cent and 90 per cent during the past 12 months.
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