2 smallcap-heavy PMS portfolios more than double investor money in FY22

NEW DELHI: Two PMS funds, which are heavily invested in smallcap stocks, more than doubled investor money in the fiscal year 2022, outperforming their benchmarks by a wide margin. Data collated by PMS Bazaar shows Green Portfolio’s Super 30 strategy, holding stocks like Precision Camshafts, Avantel, Gujarat Themis Biosyn and Bannari Amman Spinning Mills, trounced every competitor to deliver 136 per cent returns.

The portfolio holds 29 stocks, mostly from pharma, textiles, chemicals, industrial manufacturing and fertiliser sectors. The average market cap of companies held by the portfolio stood at Rs 2,819 crore.

Divam Sharma, Founder at Green Portfolio, said this is a high-risk and high-return nature of the strategy where businesses are chosen considering turnarounds that may lead to a spike in performance due to any special situation forming such as a change in key management, M&A, deleveraging, etc.

“Few of our selections in this strategy like Precision Camshafts, Shiva Cement, and Tanfac have performed exceptionally well over FY21-22 as we saw the emergence of such special situations in most of our portfolio companies,” he said.

Sharma said currently the strategy is also focusing on many potential rerating stocks. “Scheme’s model portfolio currently has 20 per cent investment in textiles, 17.5 per cent investment in healthcare and 15 per cent investment in chemicals. We continue to focus on the broader direct and indirect beneficiaries of PLI and China plus one theme,” he added.

Counter Cyclical Investment’s Long Term Value Investment strategy came in second to deliver 121 per cent return. The fund holds 49 stocks, all smallcaps, in the portfolio. Its top five holdings are Ambika Cotton Mills, Orient Bell, Allcargo Logistics, Garware Hi-Tech Films and Apollo Sindoori Hotels.

Agencies

Among other top PMS performers of the fiscal were Rights Horizons’ Minerva Indian Underserved, Care Portfolio’s Growth Plus Value and Aequitas Investment’s India Opportunities Products that delivered 70-90 per cent returns.

In comparison to these two strategies, BSE Smallcap index appreciated 37 per cent in fiscal 2022.

Among the funds run by big name managers, none come close to emulating their performance. There are some that even failed to beat their benchmarks.

Saurabh Mukherjea-founded Marcellus’ Little Champs failed to beat its benchmark for the second year in a row. Similarly, its flagship Consistent Compounders underperformed benchmark for another year.

Samir Arora-founded Helios Capital’s India Rising also performed below par with 18 per cent returns. First Global’s The India Super 50, though, outperformed Nifty500 with 32 per cent returns. Basant Maheshwari’s Equity Fund generated 26 per cent returns.



Source link

Leave a comment