Fund managers hold ground in choppy mkts

This week, we review the performances of the Smart Portfolios fund managers between December 23, 2010 and February 10 this year in comparison with the benchmark S&P CNX 500 index value. Despite a steep fall of over 15 per cent since the start of 2011, the fund managers managed their portfolios smartly. Although mostly aligned with the benchmark value, they were successful in evading any major erosion in portfolio value.

Ajay Parmar saw his portfolio move approximately in line with the benchmark S&P CNX 500 index net worth except on certain dates like December 28 and December 30. Parmar’s portfolio saw significant divergence compared with the benchmark, wherein his net worth spiked to Rs 10.36 lakh on the former date, and reflected a steep fall on the latter. Since December 23 2010, Parmar has liquidated 12 holdings, of which eight incurred an average loss of 11 per cent, while the others yielded net gains in the range of 14 per cent. Currently, Parmar’s holdings in Gitanjali Gems, Manali Petrochemical and Bajaj Hindusthan have depreciated more than 40 per cent each. The value of his portfolio has declined 9.1 per cent to Rs 9.08 lakh while the benchmark’s portfolio is worth Rs 9.18 lakh, down 8.2 per cent since the inception. Parmar holds Rs 2.84 lakh in cash.

Shishir Bajpai’s portfoilo deviated little from the S&P CNX 500 net worth’s trend line over the past month and a half. On December 24, however, one saw his investments move in sharp contrast to the benchmark net worth to come down to Rs 13.29 lakh from Rs 13.36 lakh on December 23. Conversely, on January 27, his portfolio managed to shrug off the steep fall in the benchmark net worth. On average, Bajpai’s investments followed a steady pattern, and his stock sales yielded an average return of barely 2 per cent. All his current holdings reflect negative returns except Orchid Chemicals, which is marginally above his cost price. Bajpai’s portfolio value has appreciated 20.3 per cent at Rs 12.03 lakh, and he holds no cash.

Vinay Khattar’s investments showed a relatively steady trend in comparison to the S&P CNX 500 benchmark’s performance. On January 7, 13 and 28, the benchmark portfolio value dipped significantly, but Khattar managed to safeguard his portfolio by having exited at the right time and raising his cash levels during late December and early January. He deployed the funds again towards the end on January. Khattar currently holds Rs 4.45 lakh in cash, while his portfolio reflects a minor gain of 2.2 per cent at Rs 10.21 lakh. Amongst his holdings, eClerx Services shows the greatest dip in value, down 16 per cent, while Marg is down 12 per cent and Shree Renuka Sugars has slipped 10 per cent from his buy prices.

Siddharth Bhamre has discontinued from Smart Portfolios, as of February 9 this year, owing to his increased obligations at Angel Broking. According to a note sent by Angel Broking, Bhamre has been travelling extensively and hence it becomes difficult for him to manage the portfolio. Bhamre had been inactive since the first week of December, which resulted in a steep decline in his networth. At closure, his portfolio value depreciated a substantial 30.3 per cent at Rs 6.97 lakh.

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