Stocks that helped top-performing PMSes leave others behind in Feb

NEW DELHI: Almost all portfolio management schemes (PMSes) delivered positive returns to their high networth investors in February, with many of them outperforming their respective benchmarks, as the domestic equity market continued to hit fresh record highs riding on superior earnings performance and supportive Budget announcements.

Midcap and smallcap-focused strategies were among the best performers, with nine out of the top 10 schemes on the performance chart coming from the two categories. Two multicap funds, one each from TCG Advisory and Hanut Alternate Investments, also figured on the leaderboard.

The best performer was Super Value strategy of Right Horizons, which primarily invests in midcaps. The strategy delivered nearly 22 per cent return for the month. In the last six months, it has gained 47 per cent.

The fund has a huge focus on non-traditional IT firms and the consumer goods sector, with top five holdings being Dixon Technologies, APL Apollo Tubes, Solara Active Pharma, PI Industries and Hindustan Foods. The scheme holds a total of 17 stocks.

Anil Rego, who manages the fund, said his focus on identifying emerging trends before others has paid off. He prefers to invest in the leaders of any industry.

“We got into IRCTC when it fell and increased allocation significantly. We were comfortable with its growth story, as it’s the leader in its domain. APL Apollo is another stock emerging as a leader in the pipes segment,” he said.

Rego said a change in strategy has also paid off. Earlier he had a much more diversified portfolio to manage the risk, but now he has cut down the number of holdings to create a more focused portfolio.

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Roha Asset Managers’ Emerging Champions, Valentis Advisors’ Rising Star Opportunity, Centrum PMS’s Multibagger and Good to Great strategies were other top performers with one-month returns of 16-21 per cent.

PMS strategies are usually long-term investments and should not ideally be judged on their one-month performance. However, what they hold in their portfolios may give an idea to investors on what is working in the market.

Abhishek Anand, who manages both the Centrum funds mentioned above, has a high conviction bet on APL Apollo Tubes, which is one of the top holdings in both funds. The stock performed really well so far in 2021 with a 50 per cent jump.

Apart from the pipe maker, he holds Vaibhav Global, Quess Corp, Granules India and Aegis Logistics among others top holdings in both the funds.

Among the more renowned PMS fund managers, multicap funds managed by Shankar Sharma and Basant Maheshwari delivered double-digit returns. Saurabh Mukherjea’s Little Champs and Kings of Capital delivered 10 per cent and 8 per cent, respectively. But his Rs 3,214 crore Consistent Compounder fund underperformed with just 2.5 per cent return. Samir Arora’s India Rising Fund delivered 8.5 per cent.

Nifty and Sensex climbed 6 per cent in February, even as BSE Smallcap Index surged 12 per cent, BSE500 8 per cent and Nifty Midcap Index 11 per cent.


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