Data compiled by PMS Bazaar showed Rising Start Opportunity strategy of Valentis Advisors, which invests in up and coming smallcap and midcap stocks, emerged the top performer with a 9.08 per cent return.
Getty Images Nifty Midcap 100 was the only major index that ended in the green last month.
NEW DELHI: PMS schemes focused on smallcaps and midcaps stole the show in January, as some big names from the industry failed to outperform their respective benchmarks thanks to a sell-off in stocks at the end of the month, which hit their returns.
Data compiled by PMS Bazaar showed Rising Start Opportunity strategy of Valentis Advisors, which invests in up and coming smallcap and midcap stocks, emerged the top performer with a 9.08 per cent return.
It was followed by Invesco’s Caterpillar strategy, which delivered 7.51 per cent, beating the benchmark by a wide margin. The midcap strategy managed by Sameer Narayan is invested in stocks like Tata Elxsi, Balkrishna Industries, Teamlease Services, United Breweries, Sundaram Fasteners, Tata Motors and Bharat Electronics.
Other top performers that generated 3-5 per cent returns included Negen Capital’s Small Cap Emerging, Phillip Capital’s Emerging India Portfolio, Sageone’s Small & Microcap, Right Horizons’ Minerva India Under-Served and Alphabots India Prime strategies.
In January, Nifty fell 2.5 per cent, BSE500 dropped 1.8 per cent and BSE Smallcap Index dipped 0.60 per cent. Nifty Midcap100 was the only major index that ended in the green, rising 0.30 per cent.
PMS strategies run by industry stalwarts like Basant Maheshwari, Saurabh Mukherjea, Bharat Shah and Shankar Sharma could not deliver positive returns, with some lagging their benchmarks by wide margins.
Basant Maheshwari’s Equity Fund Strategy was the worst performer among all the 193 funds analysed. It delivered a negative return of 8.09 per cent. Mukherjea’s Consistent Compounders also had a rather drab show with 6.8 per cent negative returns.
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The latter, which is a Rs 2,952 crore fund, is heavily invested in some of the biggest names in India: Asian Paints, HDFC Bank, Bajaj Finance, Page Industries and Pidilite Industries.
Bharat Shah’s three strategies from the multicap category -- IEP, Growth and India Select -- delivered 4-6 per cent negative returns. These strategies cumulatively manage Rs 21,102.60 crore.
The biggest of them, IEP, is heavily invested in NBFCs and pharma names, with Bajaj twins being its two top picks. India Select and Growth strategies have Bajaj Finance and Divi’s Labs as top picks, as per data available with PMS-AIF World.
In January, the market was largely bullish before a selloff surfaced just ahead of the Union Budget. Sensex hit the 50,000 mark for the first time during the month. The same bullishness has been carried on post-Budget. But not all fund managers see reasons to cheer, as they see risks to the market at such heights.
“I am bullish, but I do not like the kind of bullishness that is presented these days, as if everything is perfect or this is the best time for any market. Emerging markets are coming up and you can be bullish, and be a little bit calm in your life instead of getting hyper,” Samir Arora of Helios Capital said in a recent interview with ETNow. He believes restrictions due to Covid-19 and its aftereffects are still a worry for normal lives.
Overall, two-thirds of all PMS schemes failed to deliver positive returns for January.
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