Q3FY19 – Portfolio Performance

Market Snapshot

The Nifty posted positive returns on a year-to-date basis in 2018 while the midcap and smallcap index saw a deep correction. The earnings growth remained in single digits and the PE Ratio continues to trade at expensive levels.

Nifty 2018 Snapshot

Most of the retail investor’s portfolio was in midcap and smallcaps. This is where the pain was in 2018. A lot of stocks had corrected by 50% (Read: Sentiments – Market correction and more) and popular names have trapped investors.

Portfolio Performance

The Alphamultiple portfolio rose +0.67% for the quarter. We outperformed the Nifty 50 TRI but under-performed the mid & smallcap TRI. On a YTD basis, the Alphamultiple portfolio fell (9.04%). We maintained high cash positions in the portfolio throughout the year and have recently increased allocation above the 50% mark (Read: Live Portfolio).

Changes

This quarter, we had one exit – Dewan Housing. The stock crashed more than 50% in one day and we exited immediately. However, we had partially booked profits in June and the allocation to the portfolio was low.

We added two stocks to the portfolio in this quarter. Both the stocks have a different client base (B2B and B2C) and we have a 3-5 years view on each of these stocks. The companies are debt free, cash rich, generate high ROE and have a long runway for growth in the years to come.


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

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