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These portfolio managers for rich investors made big money in November. Here's how

These portfolio managers for rich investors made big money in November. Here's how

Market watchers believe that strong inflows by foreign institutional investors and a moderation in some commodity prices fuelled sentiment

Market watchers believe that strong inflows by foreign institutional investors and a moderation in some commodity prices fuelled sentiment Market watchers believe that strong inflows by foreign institutional investors and a moderation in some commodity prices fuelled sentiment

Majority of portfolio managers for rich investors managed to deliver a positive return to investors in November when the benchmark NSE Nifty index gained 4.14 per cent during the month. Market watchers believe that strong inflows by foreign institutional investors and a moderation in some commodity prices fuelled sentiment. Overseas investors poured over Rs 36,000 crore into the domestic equity market in November.

Data shows that Asit C Mehta Investment Intermediates’ Ace Multicap PMS strategy gained 13.54 per cent last month. It was followed by Fractal Capital Investments’ Wealth Builder (up 9.06 per cent) and Green Portfolio’s Dividend Yield (up 9 per cent). As many as 35 strategies outdid the NSE Nifty index last month. Overall, nearly 250 schemes delivered a positive return to investors in November, while some 50 strategies witnessed a fall.

Among the other major gainers, Asit C Mehta Investment Intermediates’ multi cap strategy Ace Regular Income and midcap strategy ACE Midcap also gained 8.40 per cent and 7.25 per cent, respectively last month, data collated by PMS Bazaar showed. On the other hand, Nifty Midcap 100 index added 1.93 per cent in November, while the broader index BSE 500 increased by 3.32 per cent. On the other hand, the BSE Smallcap index gained 2.44 per cent.

ICICI Prudential’s Value Strategy, Right Horizons Minerva India Under-Served, Carnelian Asset Advisors YNG strategy, ithought Financial Consulting LLP Sphere, SMC Global Securities’ Growth Strategy and Globe Capital Market’s Value strategy also gained somewhere between 6 per cent and 7 per cent last month.

ICICI Prudential’s Value Strategy, which money manager Anand Shah manages, held stocks like ICICI Bank, Bharti Airtel, State Bank of India, Bank of Baroda, The Great Eastern Shipping Company in its portfolio on October 31, 2022.

On the other hand, Right Horizons Minerva India Under-Served, which is managed by fund manager Piyush Sharma, has managed to deliver over 56 per cent annualised return to investors in the past two years till November 30. As of October 31, 2022, the strategy had 14 stocks in its portfolio with a portfolio price-to-earnings ratio of 18.1, according to PMS AIF World.

"We have delivered this (return) on the back of extremely robust and sustainable underlying earnings, which were and still are significantly underpriced. Be it in the last quarter, the first half of this fiscal, this calendar or next, underlying earnings for our book has handily outpaced that of global and local benchmarks. Our book remains on course to potentially deliver over 30 per cent earnings growth in the current fiscal. Given that the book is priced at barely 8 times FY23E EBITDA, our headline gains should have been higher," said Sharma.

In general, portfolio management services (PMS) is an investment management service offered by qualified portfolio managers. The minimum ticket size for PMS investment is Rs 50 lakh in India.

The list further highlighted schemes including Basant Maheshwari Wealth Advisers’ Equity Fund, Fractal Capital Investments’ Opportunities, Pace Financial Investment Adviser’s Prive 1, Aequitas Investment Consultancy’s India Opportunities Product, ICICI Prudential’s Contra Strategy, Counter Cyclical Investments’ Diversified Long Term Value, Tulsian PMS’s Tulsian PMS strategy, Green Lantern Capital LLP’s Growth Fund, Pace Financial Investment Adviser’s Flexi and Abakkus Asset Manager LLP’s Abakkus Emerging Opportunities Approach also gained between 5 per cent and 6 per cent in November.

While sharing his views on India Opportunities Product, Siddhartha Bhaiya, Founder and Fund Manager at Aequitas told Business Today that they are long-term investors and invest in quality companies with a lot of margin of safety. “We buy the leader in its respective category having net cash on the balance sheet with robust growth outlook,” he said.

Published on: Dec 12, 2022, 1:07 PM IST
Posted by: Priya Raghuvanshi, Dec 12, 2022, 1:00 PM IST