77% PMSes beat Nifty in September; top strategies clock 6-14% gain

Midcap and smallcap categories among best performers across equity segment; the six-month performance shows smallcaps capturing the biggest upside as markets rebounded from March lows

09 Oct 2020

After three straight months of gain, stock markets fell a bit in September. But, a majority of PMS investors beat the Nifty and as such were shielded in a big way. According to PMS Bazaar data, 77% of PMSes out-performed the loss registered by Nifty in September, with top strategies in fact clocking a handsome 6-14% gain. With largecap showing signs of tiredness, the focus has well and truly shifted to midcaps and smallcaps and naturally PMSes running those strategies topped the overall category chart. Read on to know more.

Largecap

While August had indicated a moderation in momentum, September saw largecaps, to a big extent, moving downwards. With benchmark indices comprising largecaps, the Nifty in September fell 1.2% compared to positive gains in midcap and smallcap indices.

Largecap PMSes, as a category, reported -0.75% return in September. Among the 19 largecap PMSes, the three best performers were AccuraCap Alpha10 (up 2.35%), Ambit Inv. Advisors Coffee Can (up 1.90%) and Varanium Capital Advisors (up 1.2%). As many as 12 of 19 largecap PMSes beat Nifty.

The smaller club of 3 Large & Midcap PMSes reported a category gain of 1.83%, with Bonanza Growth showing 5.28% rise in September.

Midcap

The tracked 14 Midcap PMSes as a category reported the second-highest average gain of 2.39%, which is bigger than the Nifty Midcap 100 index’s 1.80% gain. The 3 best midcap PMSes this month are Centrum Multibagger Deep Value I (up 6.1%), Centrum Deep Value IV (up 5.7%) and Ambit Inv. Advisors Good & Clean India Fund (up 5.7%).  As many as 9 of 14 midcap PMSes beat the Nifty Midcap 100.

The niche Small & Midcap PMS category clocked the highest average gain of 3.15%. These strategies were in the sweet spot because they enjoyed the best of both smallcap and midcap worlds. The three best performers in September were Tamohara Investment Managers TLES (up 8.04%), Equirus Securities Long Horizon Fund (up 6.46%) and Silverarch Mid & Small Cap Equity (4.4%).

Multicap

The biggest category in the PMS landscape is undoubtedly the multicap segment. There are 98 schemes tracked by PMS Bazaar for September 2020. The category average for this month is 1.02%, which out-performed the BSE 500 index’s 0.30% decline. The three best multicap performers in September were Moneylife MAS Growth (up 14%), Girik Capital Multicap Growth Equity (up 6.69%) and First Global India Super 50 (up 6.1%). As many as 71 of 98 multicap PMSes beat BSE 500.

Smallcap

Smallcap PMSes shined in September, with their category average at 1.33% but that failed to beat the BSE Smallcap index’s 3.7% rise. The three best performers were AccuraCap Picopower (up 7.71%), Nine Rivers Capital Aurum Small Cap Opp. (up 6.8%) and Sundaram Alternates Rising Stars (up 3.9%), all of which generated alpha.  As many as 9 of 12 smallcap PMSes failed to beat BSE Smallcap.

Do note that the 6-month performance chart of PMSes is dominated by smallcap, midcap strategies. Nine Rivers Capital Aurum scheme happens to be the best with a whopping 94.9% gain in the last 6-month period, followed by Equirus’ Long Horizon Fund (up 94.44%).

In other PMS categories, Green Portfolio MNC Advantage (up 3.05%), Green Portfolio Dividend Yield (up 1.52%) showed promise in September. In non-equity PMSes, Karvy Capital Excel and Scient Capital Aries Mid Yield strategies are the best, clocking about 0.8% gain in September.


Click here to Download Full Report

Recent Blogs

Portfolio Managers get time till October 1 to comply with new SEBI norms

In a welcome move, Portfolio Managers have been given a 3-month additional extension to comply with new norms relating to fees and charges, direct client on-boarding, nomenclature of ‘investment approach’, performance reporting, documents disclosure etc.

Consistent Alpha in PMS is achieved through focused execution of theories Says V Jayaram Joindre PMS

In a recent webinar conducted by PMS Bazaar, Mr. V Jayaram, Chief Investment Officer and Fund Manager, Joindre PMS, revealed the philosophy and methodologies followed to achieve consistent Alpha. Jayaram went on to explain interesting finer details of stock selection. Read on to know his insights of market opportunities, trends, Indian economic reforms and its impact on Portfolio Management.

Deep dive into top holdings of PMSes

Read on to know Who Owns What, Which Sector Is Hot/Cold, Cash & Portfolio Changes

Is Cash The King For Portfolio Management Services

Out of the 144 PMS strategies that disclosed cash, 47 have between 5% & 10% while 5 strategies are completely invested i.e. zero cash as on May 2020. In this article, we will look at, among other things, how strategies are placed with cash, changes in cash positions, and also put the spotlight on those who display extreme positions in terms of cash holdings as % of assets.

How To Profit From Significant Consolidation Across Financial Services Sector

India is at cross-roads. Massive disruptions in the financial sector await. The conventional business model of poorly run banks, including the public sector lenders and opaque private sector NBFCs, is ripe for a reset. Read on to Know more..

AIF LONG SHORT FUND

Most important value add of long-short portfolios is a superior client experience because of consistency of returns. Long-short portfolios fall between traditional debt and traditional equity in the risk-return spectrum. A common misconception is that leverage is used to amplify risk, whereas in practice long-short funds use leverage to dampen risk by taking short positions. Gain more knowledge from the exclusive article by Mr. Nalin Moniz, CFA, Chief Investment Officer, Alternative Equity and Business Head, Alternative Equity, Edelweiss Asset Management.

IIFL Multicap PMS consistent out performance backed by their cautiously optimistic approach

It is quite inspiring to hear out the convictions of the out performers during the current uncertainties. Mr. Mitul Patel’s cautiously optimistic approach is evidenced by consistent out performance of IIFL PMS strategies. Read on to get inspired by the optimism of Mr. Mitul Patel.

In any 5 year period max wealth is created when a smallcap becomes midcap and midcap becomes largecap

After lying low for quite sometime, midcaps are back with a bang. In just the last 3 months, the S&P BSE Midcap index is up 20%, out-performing even the Sensex. But, midcap investing is not about 3 months or 12 months. One needs to give due time to midcaps to flourish. If one can give 5 years, there is a 50% chance that a midcap company can emerge into a largecap corporation, and grow your wealth in a big way, says Rakesh Tarway, Portfolio Manager, Motilal Oswal AMC in an exclusive PMS Bazaar webinar. In an insightful session spread over one hour, Tarway, who has 17 years of experience in equity markets as analyst and head of research, shares investing lessons about midcaps and discusses the Motilal Oswal Focused Midcap PMS strategy. Read on to know more.

Copyright © 2020 PMS Bazaar. All Rights Reserved.