Q2FY20 Portfolio Performance

The Nifty has posted a 5.17% return on a YTD basis while the midcap and smallcap indices are down by 10.44% and 13.63% respectively. Our portfolio is down 2.55% on a YTD basis.

YTD Performance

Portfolio Performance

5 quarter performance

The Alphamultiple portfolio fell 2.03% for the quarter. We under-performed the Nifty but out-performed the midcap and smallcap indices. From its peak of Jan 2018, the portfolio is down ~ 18%. As our portfolio is primarily concentrated on smallcaps, we have maintained high cash allocation in the portfolio over the last two years. But, now our allocation equities has increased to 63% (Read: Live Portfolio).

Our investments in a credit rating company and a media-entertainment company have performed dismally but other investments have balanced out those drawdowns. Some stock picks of ours are up by 40% to 60% over the last one year which has reduced the overall drawdown.

9 out of 11 stocks that we own in the core portfolio have a market capitalization of less than Rs 5,000 Crores. This makes our portfolio pre-dominantly smallcap.

Changes

We closed the Wipro buyback with a profit of ~ 1%. However, many clients bought the shares of Wipro at higher prices (above Rs 290) and thus incurred a loss of ~ 3% to 5% on the buyback. Our expectation was to earn a 5% to 9% return on the buyback but the acceptance ratio was much lower than anticipated.

We have recently added a company operating in the healthcare space. We have changed our outlook on the markets and are looking to increase equity allocation in the coming months. Earlier we wanted to stay heavy on cash.


How many stocks do we own in our portfolio: Live Portfolio

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