At the time when the domestic equity markets were grappling with the geopolitical crisis between Russia and Ukraine and rising interest rates in 2022, select money managers for high networth individuals (HNIs) managed to deliver robust alpha to their investors. Data showed that at least 32 portfolio management schemes (PMS) delivered over 10 per cent return in the past 12 months when the benchmark NSE Nifty index gained just 4.33 per cent.
With a gain of 35.20 per cent, Molecule Ventures LLP’ Growth strategy emerged as the top gainer last year. The primary objective of the fund, which was launched on May 31, 2021, is to achieve capital appreciation through medium to long-term investments in quality companies with strong growth prospects, mostly in mid and smallcaps.
It was followed by Counter Cyclical Investments’ Diversified Long Term Value strategy (up 29.26 per cent), ICICI Prudential’s Value Strategy (up 24.50 per cent), Renaissance’s India Next Portfolio (up 22.19 per cent), ICICI Prudential’s PIPE (up 20.32 per cent) and Contra Strategy (up 20.03 per cent). ICICI Prudential’s Value Strategy held stocks like ICICI Bank, Bharti Airtel, State Bank of India, Bank of Baroda and The Great Eastern Shipping Company as of November 30.
On the other hand, ICICI Prudential’s PIPE, which invests in mid and smallcaps segments by having exposure in companies which enjoy some economic moat and/or undergoing special situations or are in the midst of an unfavourable business cycle, had stocks like VRL Logistics, The Great Eastern Shipping Company, Sarda Energy and Minerals, Godawari Power and Ispat and Vardhman Textiles in its portfolio as of November 30, according to PMS AIF World.
As many as 78 strategies outdid the NSE Nifty index last year, data collated by PMS Bazaar showed. Overall, 113 schemes delivered a positive return to investors in 2022, while 169 strategies witnessed a fall. In general, PMS is an investment management service offered by qualified portfolio managers. At present, the minimum ticket size for PMS investment is Rs 50 lakh in India.
The data further highlighted that schemes including Fort Capital Investment Advisory’s Value Fund, Aequitas Investment Consultancy’s India Opportunities Product, Trivantage Capital Management’s Focussed Corp Lenders (Plan B), Renaissance’s Midcap Portfolio, Right Horizons’ Minerva India Under-Served, Tulsian PMS Pvt Ltd’s Tulsian PMS strategy, Spark Fund Managers’ India @75 Core & Satellite, Ithought Financial Consulting LLP’s Sphere, Oaks Asset Management’s ABC Equity Portfolio, Green Lantern Capital’s Growth Fund and Pace Financial Investment Adviser’s Flexi also gained somewhere between 15 per cent and 20 per cent in 2022.
While sharing his view on Minerva India Under-Served, fund manager Piyush Sharma said, “We have delivered returns on the back of extremely robust and sustainable underlying earnings. Any thesis by itself wouldn’t translate into alpha capture if it isn’t coupled with the courage to step away from the crowd and associated noise, and I believe that we execute well here. In 2023 alphas will be even more driven by idiosyncratic situations versus themes, and that would likely challenge individual investors.”
On the other hand, Siddhartha Bhaiya, Founder & Fund Manager, Aequitas Investment Consultancy Private said, “We are value investors and focus only on Value – we believe buying the sector leaders having good management and with an adequate margin of safety. We will be able to generate a reasonable amount of returns from our investment. Just like Warren Buffett, we love to hold our companies for their value creation abilities - holding good businesses for a long time automatically adds a lot of value to your portfolio.”
Chanakya Capital Servics’ Growth Plan (up 14.75 per cent), Green Lantern Capital’s Alpha Fund (up 13.99 per cent), Avestha Fund Management’s Growth (up 13.92 per cent), Green Portfolio’s MNC Advantage (up 13.81 per cent), Unique Asset Management’s Strategic Fund (up 13.30 per cent), Spark Fund Managers’ India @75 Flexicap (up 13.20 per cent), Ithought Financial’s Solitaire (up 13.20 per cent), Bonanza’s Edge (up 12.19 per cent), Globe Capital Market’s Value (up 12.01 per cent) and ICICI Prudential’s Largecap Strategy (up 11.21 per cent) stood among other major gainers in the list.
Scient Capital’s Aries Mid Yield, PGIM India’s Core Equity Portfolio, O3 Securities’ Core Value Strategy-Regular and Renaissance’s Opportunities Portfolio also gained between 10 per cent and 11 per cent in 2022.
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