Welcome Smart Portfolios 3

In comparison, the benchmark S&P CNX 500 index moved up 18.1 per cent since the start of Smart Portfolios Season 2 on September 1, 2009. Phani Sekhar, however, who started a fortnight later, finished with gains of 6.8 per cent.

We will evaluate the performance of the Season 2 fund managers. But, before that, lets take a quick look at Season 3, which started on Wednesday, September 1, 2010. Although the four investment firms remain the same, we have seen a change of guard at two companies.

Amar Ambani of India Infoline has been replaced by group colleague Shishir Bajpai, senior vice-president, IIFL Private Wealth, and Phani Sekhar from Angel Broking makes way for his colleague Siddarth Bhamre, head (equity derivatives).

Ajay Parmar of Emkay and Vinay Khattar from Edelweiss continue to participate in Smart Portfolios Season 3. To know more about our fund managers, and their investment style, log on to www.smartinvestor.in/sp. In addition to the four expert fund managers, Smart Portfolio 3 is now open for the public too.

Coming back to Season 2, we saw various trading-cum-investment strategies at display. While Ajay Parmar and Amar Ambani were quickly churning their portfolios at every given opportunity, Vinay Khattar – who replaced Praveen Panjwani about six months ago – started trading more frequently, too, during the later part of the season. However, Phani Sekhar remained unmoved and continued with his approach of long-term holdings. Here is a closer look at the fund managers:

Ajay Parmar
Ajay Parmar’s major winning investments included stocks like Sabero Organics (up 45 per cent) and Jubilant Foodworks (up 39 per cent). Other positive investments were Torrent Pharma, Sesa Goa, Phoenix Mills, IRB Infrastructure, HEG, Dalmia Cements, Bhushan Steel, Bombay Dyeing, Rain Commodities, Sterlite Technologies, MSK Projects, South Indian Bank, Gujarat NRE Coke, eClerx and Lupin.

However, he lost money in JM Financial, IVRCL Assets & Holdings, Deccan Chronicle, Aban Offshore and TV18. Eventually, Parmar ended with a net worth of '14.33 lakh, including '5,500 in cash. Jubilant Foodworks, Rallis India, Excel Crop, eClerx and Cadila Healthcare were the major movers in his portfolio, while Wire & Wireless, Den Networks and Hathway Cables traded below cost price.
 

Ajay Parmar, head (research - institutional equities), Emkay
Top Holdings	% of assets	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
Hathway Cables	7.87	211.57	205.20	1.13
Den Networks	7.78	232.93	223.05	1.12
Raymond	6.31	283.25	361.80	0.90
Rallis India	5.89	735.26	1406.95	0.84
Greaves Cotton	5.65	371.95	404.70	0.81
Total investments	99.62			14.28
Cash	0.38			0.05
Net worth				14.33

Returns (%)43.35   

Amar Ambani
Amar Ambani’s top trades last year included a massive 80 per cent profit on his investment in Gitanjali Gems, followed by a 51 per cent gain in VIP Industries. Other major winners included stocks like Indian Overseas Bank, Tata Elxsi, Himatsingka Seide, Nagarjuna Construction, Sesa Goa, MRF, Dhampur Sugar, Omnitech, Mastek, Sasken, Nalco, Tata Sponge, TVS Motor, Aksh Optifibre, S Kumars Nationwide, NRB Bearings, Bata India, Valecha Engineering, Zuari Industries and IDFC.

On the flip side, he made losses in Patni Computer, McLeod Russel, Suzlon Energy, Mid-day Multimedia, Nilkamal, Orbit Corporation and Allied Digital. Towards the end, Ambani got more into cash and held just 13 stocks in his portfolio.
 

Amar Ambani, vice-president (research), IIFL
Top Holdings	% of assets	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
Raymond	3.27	288.75	361.80	0.51
Piramal Health	3.21	511.70	498.05	0.50
EIH Associated Hot	3.19	145.50	197.80	0.50
Greaves Cotton	3.13	378.65	404.70	0.49
Tata Coffee	3.11	491.45	481.85	0.48
Total investments	37.63			5.83
Cash	62.37			9.67
Net worth				15.50

Returns (%)54.98   

EIH Associates Hotels, with a gain of 36 per cent, was the top winner, followed by Raymond. Godawari Power and Reliance Industries were the major losers. His net worth amounted to '15.50 lakh, which included a cash of '9.67 lakh.

Phani Sekhar
Phani Sekhar with his strategy of holding stocks for the long-term, certainly executed lesser trades. eClerx was the major gainer, up over 63 per cent from his cost price. Of the profitable trades, a vast majority – almost 80 per cent of his investments – resulted in a minimum gains of over 20 per cent each. He executed only two sales, and he booked losses in both.

Major gainers included stocks like Axis Bank, Esab India, Federal Bank, Sunil Hitech and Crompton Greaves. However, at the end of Season 2, Sekhar had 15 stocks in his portfolio, of which just six were trading in positive territory. Axis Bank and Power Finance were the major movers, while Reliance Industries, Reliance Infrastructure, Tech Mahindra, 3i Infotech and Punj Lloyd were the losers. His portfolio value stood at '10.68 lakh.
 

Phani Sekhar, fund manager (PMS), Angel Broking
Top Holdings	% of assets	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
Reliance Infra	8.44	1183.00	1001.90	0.90
Bharti Airtel	8.43	326.74	327.35