Buoyed by strong news from the Indian Economy (accelerating growth momentum and falling inflation) , the markets posted a strong month. Key market indices including the NIFTY 50 and the BSE Sensex clocked 2.2% and 2.1% respectively for the month of May. In May 2023, Sameeksha India Equity Fund (‘Sameeksha AIF’), a SEBI registered Category III Alternative Investment Fund gained 4.5% (net of all fees and expenses), and managed to carve an outperformance as compared to the benchmark BSE500TRI which gained 3.9%.
Fund Performance Across Various Periods
Since inception, we have maintained relatively higher levels of cash (26% on average over the entire period from inception) from time to time over the duration of managing the fund. Notwithstanding the same, from inception and over one year, we have generated returns of 13.9% and 19.2% beating the benchmark BSE500 TRI returns of 4.8% and 12.9% respectively after fees before taxes. (Table 1).
| Table 1 : Fund performance2 in different periods since inception | ||||||
| Particulars | Portfolio (Post exp Pre tax ) % | Portfolio (Post exp Post tax ) % | S&P BSE 500 TRI% | BSE Mid Cap TRI % | BSE Small Cap TRI % | Average Cash level% |
| Since inception 1 | 13.9 | 11.6 | 4.8 | 8.6 | 4.1 | 26.2 |
| 1 year | 19.2 | 16.7 | 12.9 | 18.5 | 16.8 | 18.4 |
| 6 months | 9.1 | 7.7 | -0.8 | 4.8 | 3.7 | 8.0 |
| 3 months | 12.0 | 10.5 | 8.9 | 12.3 | 11.7 | 8.1 |
| 1 month | 4.5 | 3.9 | 3.8 | 6.4 | 5.6 | 2.6 |
Risk Adjusted Ratios
When compared on a risk-adjusted basis, our AIF shows an even stronger performance with a risk-adjusted alpha generation of 8.3% over the broader market benchmark since its inception. While our portfolio beta has been materially lower than our benchmark, our returns have been higher than the benchmark implying superior strong risk adjusted returns.
Furthermore, other risk-adjusted returns – Sharpe ratio and Treynor ratio, are also significantly higher than the benchmark indices (Table 2).
| Table 2 : Risk Adjusted ratios 2 | ||
| Particulars | Portfolio | S&P BSE 500 TRI |
| Jensen’s Alpha (x) | 8.3 | 0.0 |
| CAPM Beta (x) | 0.5 | 1.0 |
| Sharpe Ratio (x) | 1.2 | 0.4 |
| R-Squared (%) | 73 | 100 |
| Treynor (x) | 21.7 | 5.7 |
Performance Within The AIF Universe
We present our rankings among Long Only Category III AIFs who report their post expense and pre tax returns. For the period ending 31st May 2023, we are ranked 8th out of 23 AIFs (Table 3). We are ranked in the 7th Decile among 23 funds in the said category.
| Table 3 :Comparison of Sameeksha AIF with Long Only AIFs (post exp pre tax returns) | |
| Returns Generated | 1 year |
| Sameeksha AIF | 19.2% |
| Average | 15.7% |
| Median | 16.1% |
| Median Among Top 5 AIFs | 22.5% |
| Sameeksha AIF Rank within the Multicap Category | 8th out of 23 |
| Sameeksha AIF Decile1 Rank within the Universe | 7th Decile |
| Sameeksha AIF Percentile Rank | Top 32% |
Analyzing The Sector Performance During The Month
During the month, indices that showed growth this month include IT, Auto & Ancillaries, FMCG. For Sameeksha PMS, the Aviation, Bank, Logistics and IT sectors were outperformers compared to the benchmark. However, what hurt us is the lack of exposure towards FMCG and Auto & Ancillaries where we missed out on participating in the upturn. Below is the attribution analysis for the month of May 2023 (Table 4).
| Table 4: Sector Wise Attribution Analysis for the month of May 2023 | |||
| Sector | Portfolio Contribution | Benchmark 1 Contribution | Difference |
| Aviation | 0.90% | 0.04% | 0.86% |
| Bank | 0.78% | 0.28% | 0.50% |
| Logistics | 0.40% | 0.05% | 0.35% |
| IT | 0.97% | 0.68% | 0.29% |
| Realty | 0.33% | 0.06% | 0.27% |
| Healthcare | 0.37% | 0.15% | 0.22% |
| Infrastructure | 0.00% | -0.15% | 0.15% |
| Gas Transmission | 0.00% | -0.13% | 0.13% |
| Power | 0.00% | -0.08% | 0.08% |
| Iron & Steel | 0.00% | -0.06% | 0.06% |
| Non – Ferrous Metals | 0.00% | -0.04% | 0.04% |
| Media & Entertainment | 0.04% | 0.00% | 0.04% |
| Plastic Products | 0.08% | 0.05% | 0.03% |
| Paper | 0.00% | 0.00% | 0.00% |
| Diamond & Jewellery | 0.06% | 0.06% | 0.00% |
| Ship Building | 0.00% | 0.00% | 0.00% |
| Ratings | 0.00% | 0.00% | 0.00% |
| Agri | 0.00% | 0.01% | -0.01% |
| Mining | 0.00% | 0.01% | -0.01% |
| Miscellaneous | 0.00% | 0.01% | -0.01% |
| Finance | 0.30% | 0.31% | -0.01% |
| Abrasives | 0.00% | 0.01% | -0.01% |
| Diversified | 0.00% | 0.02% | -0.02% |
| Textile | -0.02% | 0.00% | -0.02% |
| Alcohol | 0.00% | 0.03% | -0.03% |
| Hospitality | 0.02% | 0.05% | -0.03% |
| Consumer Durables | 0.00% | 0.06% | -0.06% |
| Retailing | -0.05% | 0.02% | -0.07% |
| Capital Goods | 0.13% | 0.21% | -0.08% |
| Inds. Gases & Fuels | -0.11% | -0.02% | -0.09% |
| Construction Materials | 0.00% | 0.10% | -0.10% |
| Telecom | 0.00% | 0.11% | -0.11% |
| Chemicals | 0.00% | 0.14% | -0.14% |
| Insurance | 0.00% | 0.14% | -0.14% |
| Trading | 0.11% | 0.26% | -0.15% |
| Crude Oil | 0.00% | 0.17% | -0.17% |
| Automobile & Ancillaries | 0.18% | 0.50% | -0.32% |
| FMCG | 0.00% | 0.48% | -0.48% |
| Electricals | -0.54% | 0.01% | -0.55% |
Disclaimer – The information contained in this update is provided by our fund accounting platform and is not audited.
