March 2024* : Number one again** and thirty seventh consecutive month of top decile performance***, upside capture**** 111%, downside capture**** 54%

* Period ending  31st March, 2024,   **; For five year period among multicap PMSes with >Rs. 100 crore AUM,  *** Among multicap PMSes for five year period,   **** Five year Period

In the month of March, the benchmark S&P BSE 500 TRI rose by 0.9%, whereas the S&P BSE Smallcap Index experienced a decline of 4.5%.  Against that, Sameeksha PMS (Portfolio Management Service = Separately Managed Accounts) declined by 3.0% (net of all fees and expenses) while having cash levels of 8.8% at start of the month and 5.7% at the end of the month, indicating underperformance.  Sameeksha AIF  (Alternative Investment Fund = “Hedge Fund”)  also declined by  0.9% (post fees and expenses), indicating a bit smaller underperformance.

We summarize key aspects of our performance as follows:

Sr. No.	Vehicle	Particulars	Summary of our performance
1.	PMS	Aggregate portfolio returns till date3 (Refer Table 1, Table 2 and Figure 1)	From inception1 till date3, Sameeksha PMS has delivered an average annualized alpha of 7.6%. For the five year and three year periods4, Sameeksha PMS has delivered annualized returns of 29.9% and 27.3% respectively. For the five year and three year periods4 Sameeksha PMS has delivered annualized alpha of 12.5% and 8.0 % respectively.
2.	AIF	Aggregate fund returns till date3 (Refer Table 10, Table 11 and Table 12)	For the two year and one year periods4, Sameeksha AIF has delivered annualized returns of 30.8% and 62.2% respectively. For the two year and one year periods4 Sameeksha AIF has delivered annualized alpha of 12.9% and 22 % respectively.
3.	PMS	Fund performance on a rolling periods basis (Refer Table 3, Table 4 and Table 5)	Five year rolling periods since inception Alpha delivered 100% of the time (i.e 37 out of 37 observations) Median alpha ~ 7% Three year rolling periods since inception Alpha delivered 97% of the time (i.e 58 out of 60 observations) Median alpha ~ 9%    For the rolling five year periods (37 observations), we have been in the Top Quartile and Top Decile 100% of the time.  For the rolling three year periods (60 observations), we have been in the Top quartile 93% of time and Top Decile 60% of the time.
4.	PMS	Risk Adjusted Ratios: Lower risk, Higher Return (Refer Table 6)	We have delivered superior three and five year risk adjusted returns as indicated by Sharpe ratio, Sortino ratio, and Information ratio as well as greater than 100% upside capture versus far below 100% downside capture.
5.	AIF	Risk Adjusted Ratios: Lower risk, Higher Return (Refer Table 13)	We have delivered superior since inception and one year risk adjusted returns as indicated by Sharpe ratio, Sortino ratio, and  Information ratio as well as greater than 100% upside capture versus far below 100% downside capture. We however caveat that with the  short tenure (just two years) of our AIF.
6.	PMS	PMS Universe rankings (Refer Table 7)	Among multicap PMSes reporting their performance to PMS Bazaar and having AUM of more than INR 100 crs, Sameeksha is ranked 1st out of 57 funds, jointly with two other funds, for the performance over the five year period and 15th out of 80 PMSes for the performance over the three year period4. Further, among multicap PMSes disclosing their names and performance on the website of Association of Portfolio Managers of India (APMI) and having AUM more than INR 100 crs, Sameeksha is ranked 2nd out of 54 funds for the performance over the five year period4.
7.	AIF	AIF Universe rankings (Refer Table 14)	Among Long Only Category III AIFs reporting their performance to PMS Bazaar, Sameeksha is ranked 2nd out of 43 AIFs for the performance over two year period and 8th out of 63 AIFs for performance over one year period4.
8.	PMS	Returns of Individual portfolios (Refer Figure 2)	As Sameeksha PMS does not follow a model portfolio approach, tracking individual client performance becomes more relevant.  All the clients with an age of account from less than six months to more than seven years have realized annualized alpha, with an average of ~ 7%.  About 63% of our assets under management can be attributed to clients who have a tenure of seven years or more with us.
9.	PMS	Performance across pre, during and post Covid periods (Refer Table 8)	Between June 30, 2022 till date3, (Post Covid Period) delivered annualized alpha of 14.2% Between February 29, 2020 and June 30, 2022, (Covid Period) delivered annualized alpha of 8.3% From inception (1st April 2016) till February 29, 2020 (Pre-Covid Period), delivered annualized alpha of 3.1%
10.	PMS	Portfolio performance on a Financial Year basis and Calendar Year basis  (Refer Figure 3 and Figure 4)	Delivered alpha (outperformance over the benchmark5) in six out of eight financial years including the current incomplete FY2024.  Aggregate annual alpha over all the eight financial years ~ 61%  Delivered alpha (outperformance over the benchmark5) in five out of nine calendar years including the current incomplete CY2024.  Aggregate annual alpha over all the nine calendar years ~ 63.8%

1. Inception is 01/04/2016  2. Inception is 10/02/2022 3. As on 31st March, 2024 4. Period ending 31st March, 2024 5. Benchmark is BSE500TRI 

 

PMS Performance and other details –

 

Three important things must always be kept in mind when looking at performance data. First, for funds such as ours that do not follow model portfolio strategy, the performance of individual clients for different duration is important to look at. Second, some PMSes may be charging fees outside the PMS and hence after fees, performance data may not be comparable to ours. Third, it is important to look at not only portfolio returns but also risk adjusted ratios. We provide data to address all three points later in this note.

Aggregate Portfolio Returns over various time periods

Sameeksha PMS has delivered a substantial aggregate annual alpha of 67.1% over BSE500 TRI over the eight financial years (including the current incomplete financial year) implying an average alpha of 7.6% since inception (Table 1).

Table 1: Key data on alpha generation over eight2  financial years since inception1
Key Indices	Aggregate alpha generated %	Average alpha generated%	% times alpha generated over 8 FYs
BSE500 TRI	61.0	7.6	75%

1. Inception Date 1/4/2016 2. Current financial year upto 31st March, 2024

 

 

It is important to note that we have maintained relatively higher levels of cash (13% on average over the entire period from inception) from time to time over the duration of managing the portfolio. Notwithstanding the same, from inception, over five years  and over three years respectively, we have generated returns of 23.4%, 29.9% and 27.3% in INR terms and 20%, 25.3% and 21.9% in USD terms thus generating substantial alpha over the  Indian benchmark BSE500 TRI returns and SPY ETF (ETF tracking US S&P 500 index), respectively. Also, we have delivered strong returns relative to benchmark across various key time periods (Table 2 and Figure 1).

Table 2: Portfolio performance since inception
Period	Portfolio Return % (INR) 1 2  (A)	Benchmark Returns4 %  (B)	Alpha vs the Benchmark4% (A-B)	Portfolio Returns % (USD)  (C)	US Market5 % (D)	Alpha vs US Market5 % (C-D)	Average Cash Levels
Since inception3	23.4	16.9	6.6	20.0	12.3	7.7	13.0
5 Years	29.9	17.4	12.5	25.3	13.0	12.2	9.3
3Years	27.3	19.3	8.0	21.9	9.6	12.3	10.9
2 Years	29.4	17.8	11.5	23.4	7.5	15.9	9.7
1 Year	60.1	40.2	19.9	57.8	27.5	30.2	8.6
6 Month	17.6	17.4	0.2	17.1	22.2	-5.1	12.1
3 Month	3.0	4.5	-1.5	2.9	10.5	-7.6	7.4
1 Month	-3.0	0.9	-3.9	-3.5	2.8	-6.3	8.8

1. Post Fees and Expenses, 2. Aggregate Portfolio , 3. From Inception (1/4/2016) till 31st March, 2024  4. S&P BSE500TRI 5. SPY ETF

 

Aggregate Portfolio Performance and ranking on a rolling periods basis

 

For rolling three year periods applicable to our entire operating history, we have been ranked among the multicap universe in the Top Decile 60% of the time (36 out of 60 observations) and in the Top Quartile 93% of the time (56 out of 60 observations). For the remaining 7% observations, we were ranked in the Second Quartile (Tables 4 and 5).  For rolling five year periods applicable to our entire operating history, we have been ranked among the multicap universe in the Top Decile 100% of the time (37 out of 37 observations).

Table 3: Number of times alpha1 generated over rolling five and three year periods
Particulars	Rolling Five Year periods	Rolling Three Year periods
Number of observations 2	37	60
Number of times alpha generated	37	58
% times alpha generated	100%	97%
Median annualized alpha	7%	9%
Maximum annualized alpha	16%	23%
Minimum annualized alpha	5%	0.4%

1. For this calculation, alpha is calculated over BSE500 TRI

 

For rolling three year periods applicable to our entire operating history, we have been ranked among the multicap universe in the Top Decile 60% of the time (36 out of 60 observations) and in the Top Quartile 93% of the time (56 out of 60 observations). For the remaining 7% observations, we were ranked in the Second Quartile (Tables 4 and 5).  For rolling five year periods applicable to our entire operating history, we have been ranked among the multicap universe in the Top Decile 100% of the time (37 out of 37 observations).

 

Table 4 : Decile distribution of our rank within the Multicap PMS universe on a rolling basis since April 2019
Particulars	Five years	Three years	One year
Number of Observations	37	60	60
Top Decile1	100%	60%	45%
9th Decile2	0%	30%	23%
8th Decile	0%	7%	12%
7th Decile	0%	2%	2%
6th Decile	0%	2%	7%
5th Decile	0%	0%	3%
4th Decile	0%	0%	5%
3rd Decile	0%	0%	3%
Total	100%	100%	100%

1. Top Decile = in top 10%,  outperformed 90% of the funds 2.. 9th Decile = in top 20%, outperformed 80% of the funds

Table 5: Quartile distribution of our rank within the Multicap PMS universe on a rolling basis since April 2019
Particulars	Five Years	Three Years	One Year
No. of Observations	37	60	60
Top Quartile 1	100%	93%	75%
2nd Quartile 2	0%	7%	18%
3rd Quartile	0%	0%	3%
4th Quartile	0%	0%	3%
Total	100%	100%	100%

1. Top Quartile = in the top 25%, i.e. outperformed 75% of the funds 2. 2nd Quartile = in the top 50% i.e. outperformed 50% of the funds

 

Risk Adjusted Ratios: Not all returns are the same, Higher Returns at lower Risk 

 

When compared on a risk adjusted basis, our PMS has shown an even stronger performance. The Information Ratio(IR) measures the excess return of a portfolio over a benchmark per unit of active risk. A higher Information Ratio suggests better risk-adjusted performance.The higher five year IR  indicates better performance over the longer period in comparison to the IR in the 3 year period. The Sortino ratio measures the risk-adjusted return of an investment, focusing only on the downside risk. A higher Sortino ratio indicates better risk-adjusted returns, particularly with respect to downside risk. 

Moreover, Upside Capture measures how well a fund performs as compared to a benchmark when the benchmark has positive returns. A higher upside capture ratio (> 100%) indicates that the fund captures more of the benchmark’s positive movements. Whereas, Downside Capture measures how well a fund performs compared to a benchmark when the benchmark has negative returns. A lower downside capture ratio (< 100%) indicates that the fund preserves capital better during market downturns. 

Furthermore, other risk-adjusted returns – Sharpe ratio is also significantly higher (Table 6).  

1. As of 31st March, 2024  

Performance within the PMS Universe

We continue to maintain our top rankings both within the multicap PMS universe as well as the entire PMS universe for key periods of three and five years. The multicap PMS universe rankings are more relevant to us since we follow the multicap strategy.

In the interest of a fair comparison, we present our rankings among those multicap PMSes with AUM more than INR 100 crs. Within this universe, we are 1st out of 57 PMSes, jointly with two other PMSes, for the five year period  and  15th out of 80 PMSes for three year period, highlighting our superior performance over the long term periods (Table 7). Among the multicap universe (considering all AUM), we are consistently ranked in the Top Decile for the five year period for all 36 out of 36 observations reflecting well on the consistency of our performance.

1. Post fees and expenses 2. Aggregate Portfolios rounded off to nearest integer 3. 57 Funds 4. 80 Funds 5. 84 Funds 6. 86 Fund 7. Joint first with two other funds

Returns of Individual Portfolios

 

Because we don’t follow model portfolio strategy, the performance of individual clients is far more important than overall portfolio aggregate returns  (Figure 2). For investors who are with us for 3 years and more, Sameeksha PMS has returned a very substantial alpha with an average annualized alpha of approx. 6.8% for the three year period ending 31st March, 2024. Similarly, for investors who are with us for 5 years or more, Sameeksha PMS has returned substantial alpha with an average annualized alpha of approx. 12.4% for the five year period ending 31st March, 2024.  The Figure below shows the average annualized returns and alpha over different periods of time of all the clients as on 31st March, 2024.

Performance Of PMS Over The Covid Timeline (Pre, During, And Post) 

The Covid Pandemic induced significant volatility in the equity markets. Hence, it is useful to look at the performance across three time slices : Pre Covid, During Covid and Post Covid. Sameeksha PMS has outperformed the benchmark across all of these three time periods with meaningful alpha (Table 8). This consistency of performance may be an important factor in comparing us with the other funds.

Table 8: Absolute and Annualised returns1 – Pre, During, and Post Covid
Duration	Absolute Portfolio Returns(%) (A)	Absolute Benchmark Returns2 (%) (B)	Alpha % (A-B)	Annualised Portfolio Returns (%) (C)	Annualised Benchmark Returns2 (%) (D)	Alpha % (C-D)
01.07.2022 to 31.03.2024 (Post Covid)	84.4	53.4	30.9	42.1	27.9	14.2
01.03.2020 to 30.06.2022 (During Covid)	76.0	50.4	25.6	27.5	19.1	8.3
01.04.2016 to 29.02.2020 (Pre Covid)	67.6	50.6	17.0	14.1	11.0	3.1

1. Post fees and expenses 2. S&P BSE500TRI

Aggregate Portfolio Performance on a financial year and calendar year basis

For the month of March, Sameeksha PMS has underperformed the benchmark BSE 500 TRI by generating -3.0% returns against the benchmark BSE500TRI returns of 0.9%.  For Financial Year 2023-24, we have outperformed BSE500 TRI by 19.9%. Looking at our performance over the financial years (Figure 3), we have outperformed our benchmark in six out of eight financial years (including the current incomplete financial year). Key however is that the sum of outperformance of 70.8% in those six years far exceeds the sum of underperformance of 9.8%  in the remaining two  years. Furthermore, if we are able to sustain the outperformance achieved so far in this financial year for the rest of the year, it will become a streak of five consecutive years of generating alpha.

For the calendar year 2024, we are underperforming the benchmark BSE500 TRI by -1.5%. We have outperformed the benchmark in five out of nine calendar years and the sum of outperformance of 81.8% in five years far exceeds the sum of underperformance of 18%  in the remaining three  years. (Figure 4)

It is important to note that we delivered this alpha despite maintaining an average cash level of 13.1% across the eight financial years.

Cumulative Performance versus the benchmark

Sameeksha PMS’s outperformance over its benchmark has continued to widen positively over the years. An investment of Rs. 100 with us since inception (April 2016) would have grown to Rs. 538 , far outpacing what one would have earned by investing in a fund that achieved benchmark returns (Figure 5). 

 

 

Analyzing the sector performance during the month

During the month, sectors that showed growth in the indices include Bank, Automobile & Ancillaries, Infrastructure and Telecom. For Sameeksha PMS, Aviation, Hospitality, Healthcare and Finance sectors were major outperformers compared to the benchmark. However, what hurt us is the lack of sufficient exposure towards the Infrastructure and Telecom sectors where we missed out on participating in the upturn. Below is the attribution analysis for the month of March 2024  (Table 9).   

 

1. BSE500TRI

AIF Performance and other details-

Aggregate Fund Returns over various time periods

 

Since inception, we have maintained relatively higher levels of cash (18.7% on average over the entire period from inception) from time to time over the duration of managing the fund. Notwithstanding the same, from inception, over two years and over one year, we have generated returns of  29.8%, 30.8% and 62.2% in INR terms and 23.9%, 24.8% and 59.8% in USD terms beating the benchmark BSE500 TRI returns and ETF tracking S&P 500 index, respectively after fees before taxes. (Table 10).

 

1. Post Fees and Expenses, 2. Aggregate Portfolio , 3. From Inception (10/2/2022) till 31st March, 2024 4. S&P BSE500TRI 5. SPY ETF

 

Aggregate Fund Performance on a financial year and calendar year basis

For the month of January, Sameeksha AIF has underperformed the benchmark BSE 500 TRI by generating -0.9% returns against the benchmark BSE500TRI returns of 0.9%.  Looking at our performance over the financial years (Table 11), we have outperformed our benchmark in FY 2023 and we continue to outperform in the current incomplete FY 2024. For the financial year 2024 till date, we have positioned ourselves well by outperforming the benchmark BSE500 TRI by 22%.

 

1. From 1st April, 2023 to 31st March, 2024  2. Since Inception (10/02/2022) till 31st March, 2023 3.  Post Fees Pre Tax  4. S&P BSE500TRI

 

For the calendar year 2024, we have outperformed the benchmark BSE 500 TRI by 0.7%. Despite being a new fund, we were still able to produce alpha for calendar years 2022 and 2023 and outperformed the benchmark BSE500 TRI by 27.7% AND 3.6% respectively. (Table 12)

 

1. From 1st January, 2024 to 31st March, 2024  2.  Post Fees Pre Tax  3. S&P BSE50TRI 4. Since inception (10/02/2022) till 31st December, 2022

 

Risk Adjusted Ratios

When compared on a risk adjusted basis, our PMS has shown an even stronger performance. The Information Ratio (IR) measures the excess return of a portfolio over a benchmark per unit of active risk. A higher Information Ratio (IR) suggests better risk-adjusted performance. The Sortino ratio measures the risk-adjusted return of an investment, focusing only on the downside risk. A higher Sortino ratio indicates better risk-adjusted returns, particularly with respect to downside risk. 

Moreover, Upside Capture measures how well a fund performs as compared to a benchmark when the benchmark has positive returns. A higher upside capture ratio (> 100%) indicates that the fund captures more of the benchmark’s positive movements. Whereas, Downside Capture measures how well a fund performs compared to a benchmark when the benchmark has negative returns. A lower downside capture ratio (< 100%) indicates that the fund preserves capital better during market downturns. 

Furthermore, other risk-adjusted returns – Sharpe ratio is also significantly higher (Table 13). 

Table 13: Risk Adjusted Performance Ratios
Performance Indicator	Since Inception 1	One Year 2
Sharpe Ratio	1.7	4.4
Information Ratio (IR)	1.5	2.3
Sortino Ratio	4.6	27.5
Upside Capture	94%	112%
Downside Capture	12%	NA

1. Since inception(10/02/2022) to 31st March, 2024  2. As of 31st March, 2024

Performance within the AIF Universe

We present our rankings among Long Only Category III AIFs. For the period ending 31st March, 2024 , we are ranked 2nd out of 43 AIFs for the two year period, or Top Decile and 8th out of 63 AIFs for the one year period (Table 14), or 9th Decile. Because there is a lot of divergence in the way funds report their returns (post exp & tax; post exp, pre tax; gross returns; and post exp & tax pre perf. fees & tax) , we are doing comparison on a gross return basis to cover the entire applicable universe of funds.

Table 14 :Comparison of Sameeksha AIF with Long Only AIFs 2
Returns Generated	2 Year	1 year
Sameeksha AIF	33%	67%
Average	20%	49%
Median	19%	48%
Median Among Top 5 AIFs	32%	91%
Sameeksha AIF Rank within the Multicap Category	2nd out of 43	8th out of 63
Sameeksha AIF Decile1 Rank within the Universe	Top Decile	9th Decile
Sameeksha AIF Percentile Rank	Top 3%	Top 12%

1. Top Decile = in top 10%, outperformed 90% of the funds, 9th Decile = in top 20%, outperformed 80% of the funds 2. Aggregate Portfolios rounded off to nearest integer

Cumulative Performance versus the benchmark

Sameeksha AIF’s outperformance over its benchmark has continued to widen positively since inception. An investment of Rs. 100 with us since inception (Feb 10,2022) would have grown to Rs. 174, far outpacing what one would have earned by investing in a fund that achieved benchmark returns (Figure 6). 

 

Analyzing the sector performance during the month

 

During the month, sectors that showed growth in the indices include Bank, Automobile & Ancillaries, Infrastructure and Telecom. For Sameeksha AIF, Aviation, Hospitality, Healthcare and Textile  sectors were major outperformers compared to the benchmark. However, what hurt us is the lack of sufficient exposure towards the Infrastructure and Telecom where we missed out on participating in the upturn. Below is the attribution analysis for the month of March 2024 (Table 15). 

 

Table 15: Sectorwise Attribution Analysis for the March, 2024
Sector	Portfolio Contribution	Benchmark Contribution1	Difference
Aviation	0.54%	0.03%	0.51%
Hospitality	0.09%	0.01%	0.08%
Construction Materials	0.00%	-0.05%	0.05%
Agri	0.00%	-0.05%	0.05%
Gas Transmission	0.02%	-0.03%	0.05%
Textile	0.03%	-0.01%	0.04%
Business Services	0.00%	-0.03%	0.03%
Trading	0.01%	-0.02%	0.03%
Mining	0.00%	-0.02%	0.02%
Logistics	0.00%	-0.02%	0.02%
Ship Building	0.00%	0.00%	0.00%
Finance	0.02%	0.02%	0.00%
Paper	0.00%	0.00%	0.00%
Miscellaneous	0.00%	0.00%	0.00%
Healthcare	0.04%	0.04%	0.00%
Plastic Products	0.00%	0.00%	0.00%
Consumer Durables	0.00%	0.00%	0.00%
Ratings	0.00%	0.00%	0.00%
Alcohol	0.00%	0.00%	0.00%
Insurance	0.00%	0.01%	-0.01%
Inds. Gases & Fuels	0.00%	0.01%	-0.01%
Abrasives	0.00%	0.01%	-0.01%
Power	0.00%	0.01%	-0.01%
Realty	-0.03%	-0.02%	-0.01%
Diversified	0.00%	0.02%	-0.02%
Electricals	0.00%	0.02%	-0.02%
Diamond & Jewellery	0.00%	0.05%	-0.05%
Non – Ferrous Metals	0.00%	0.05%	-0.05%
Chemicals	-0.04%	0.02%	-0.06%
FMCG	0.00%	0.06%	-0.06%
Iron & Steel	0.02%	0.11%	-0.09%
Crude Oil	0.00%	0.11%	-0.11%
IT	-0.85%	-0.73%	-0.12%
Retailing	0.00%	0.14%	-0.14%
Capital Goods	0.00%	0.14%	-0.14%
Media & Entertainment	-0.20%	-0.03%	-0.17%
Telecom	0.00%	0.18%	-0.18%
Infrastructure	0.00%	0.22%	-0.22%
Automobile & Ancillaries	-0.09%	0.26%	-0.35%
Bank	-0.38%	0.41%	-0.79%

 1. BSE500TRI

 

Disclaimer – The information contained in this update is provided by our fund accounting platform and is not audited. This document is for informational purposes only and is not intended for solicitation to residents of the United States or any other jurisdiction which would subject Sameeksha Capital or its affiliates to any registration requirement within such jurisdiction or country. It does not constitute an offer to buy or sell securities or financial instruments. Recipients are advised to conduct their own research and seek professional advice before making any investment decisions.