SEBI (Research Analyst) Registration Number: INH200004471


12 January 2018

Q3FY18: Portfolio Performance

In this post, we highlight the performance of the portfolio for the quarter ended 31st December, 2017. We document our portfolio performance on a quarterly basis for the benefit of our readers and those who are interested in knowing the performance of our advisory service.
This post focuses solely on the performance of stocks and not the company results.

Performance


Q3FY18 was a good period for our portfolio with 15.37% returns. Nifty 50 index itself delivered 6.95% returns and thus we were able to generate an out-performance of 8.42%. Once again, we cannot complain of the performance and our reasonably satisfied. Our clients are heavily invested in liquid and ultra-short funds as we look for more opportunities to invest in. On a risk-adjusted basis, we have been doing reasonably good. We see no reason to take any unnecessary risk and deploy our funds in companies trading beyond our acceptable valuations.

The above performance doesn't include a neat Rs 19,000 profit in an arbitrage opportunity and dividends received. Both of these push up our returns further up!
A simple chart of our portfolio's performance against the Nifty index looks like this:


We have been bullish on the mid-cap IT space and have added a company from this sector (we might add 1-2 more this quarter), there are also companies which offer a high growth outlook and are available at fair valuations. More than our stock selection, one has to credit the high momentum that the markets are experiencing. The valuations are now looking very expensive and every step at this juncture has to be taken with immense care.

PC Jeweller has turned out to be a neat 9 bagger (900% appreciation) for us and we continue to remain bullish on it (albeit with a lower allocation). This quarter returns were rather fuelled by the microcaps and smallcaps that form a small part of our portfolio but have delivered 60% to 80% in couple of months.

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Our aim remains to generate high returns for our investors without taking any unnecessary risk.