Monthly Performance Update: Strong Alpha In June 2021 Allows Us To Sustain Top 10% Rank Across All The Key Periods

Sameeksha PMS continues to generate market-beating performance with a return of 5.3% versus the benchmark index CNX500 TRI returns of 2.1% for the month of June 2021. On an aggregate basis, Sameeksha PMS has delivered a CAGR return of ~24% versus CNX500 TRI return of 16.5% since inception. Portfolio returns for clients who have been with us for around five years or longer have been even higher. For all the relevant periods i.e., one year, two years, three years, five years and since inception, Sameeksha PMS has delivered strong alpha and achieved top decile ranking, a fairly uncommon achievement. 

This outperformance has been achieved despite maintaining average cash levels of above 10% over the entire period. As a result, our strong alpha has translated into strong risk adjusted returns as well.

Portfolio Returns

Broader markets remained upbeat for June 2021 with CNX 500 TRI generating 2.1% returns. Sameeksha PMS delivered a strong performance for the month with a significant alpha of 3.2% over the benchmark index (Table 1). 

Strong alpha over longer periods can make a big difference to ending portfolio value. Rs. 100 invested at the time of inception in Sameeksha PMS has grown to Rs. 300+ (Figure 1),  far outpacing what one would have earned by investing in a fund that achieved benchmark returns. We would note however that the vast majority of mutual funds and PMSes have found it difficult to beat the broad benchmark (CNX500 TRI). 

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. The multicap PMS universe rankings are more relevant to us since we follow multicap strategy.

We have retained our rankings within the top 10 percentiles across the periods (Table 2) and have remained among the top 5 PMSes for the periods of two, three and five years.

In comparison with the entire PMS universe, we have sustained our top ranking for longer durations of two, three and five years. Sharp rally in small cap and mid cap stocks has enabled PMSes focussed on those categories to deliver strong performance. Still, we have come through within the top two deciles across all PMSes  (Table 3).

Comparison Of Rolling Returns With Other Funds

Rolling returns provide a much better picture than single period returns – which can often be distorted with one-off performances. For a three year period ending June 2021, we have meaningfully outperformed all the major relevant mutual fund categories that we are comparable with and have maintained our top decile ranking across both our comparable universe of Multicap PMSes as well as across the entire PMS universe (Table 4).

Similarly, our rolling one year returns have been strong and we have maintained our rankings in the top two deciles, across the PMS universe, consistently in the last two years (Table 5).

Performance Of Individual Portfolios

Irrespective of their investment timings, the portfolio returns of our clients continue to outpace the benchmarks by a significant margin (Table 6). For a long term investor, Sameeksha PMS has proven to be a valuable partner for their investments.

Fund Performance On A Financial Year Basis

Sameeksha PMS generated a return of 17.5% in three months (April – June 2021) of the current financial year ending March 2022, outperforming its benchmark index CNX 500 TRI – which returned 9.8% over the same period (Table 7). This outperformance has been achieved despite maintaining average cash levels of 7.4% –  indicating strong risk adjusted returns as well. 

For the invested portion of our portfolio (i.e. excluding cash) we have clearly out-performed our benchmark every financial year except one and our cumulative out-performance is far greater than the under-performance in that one year. 

Risk Adjusted Ratios

Sameeksha PMS continues to deliver very strong risk adjusted performance (Table 8), with a risk adjusted alpha generation of 8.5% annually over the broad market benchmark since its inception.

Furthermore, other risk adjusted returns – Sharpe ratio and Treynor ratio, are also significantly higher than the benchmark indices (Table 8).

Please let us know if you have any questions. 

Disclaimer : The information contained in this update is based on data provided by our fund accounting platform and is not fully audited. 

Among The Most Successful Professionals In Equities; Rated The #1 Technology Sector Analyst In Institutional Investors Polls For A Decade. Highly Respected Among Peers For His Path-Breaking Work And Thought Leadership. Rose From An Associate To Managing Director Within A Span Of Six Years In The Investment Banking Industry

Twenty Years Of Experience Building Top Research Franchises: Seven Years As Managing Director And The Global Head Of Technology At JP Morgan, Six Years As Director And Head Of Asia Pacific Technology At Credit Suisse And Five Years As Founder Of Equirus SecuritiesTrack Record Of Innovation And Excellence In Equity Research

Anchored The Rise Of Credit Suisse  From An Unknown Name In Asian Equities To A Number One Ranked Firm In Asian Equities; Head Of Asia Pacific Tech Research

Credited For Building Top Ranked Global As Well As Asian Tech Research Practice At JP Morgan As MD And Global Head Of Tech Research; Made Defining Contribution To Enable JPMorgan To Move From An Also-Ran Player To A Top Global Name In Equity Research

Built A Very Profitable And Award Winning Indian Equity Business At Equirus From Scratch On A Tiny Budget; Achieved Number Two Ranking In Asia For Idea Performance

Impeccable Track Record Of Identifying True Long Term Winners Ahead Of Others Including Samsung Electronics, TSMC, Infosys And TCS And Guiding Investors To Stay Clear Of Laggards Such As UMC And SMIC Years Ahead Of Consensus.

Mind Of An Engineer, Worked In A Team That Designed The World’s Fastest Microprocessor With A Manta “Paranoia Is The Safest Frame Of Mind”. Awarded Two US Patents.

Work Experience Of Designing The World’s Fastest Microprocessors Based On Cutting Edge Technology For Which He Jointly Holds Two US Patents

Best In Class Business Education From The World Renowned Business School: Double Major In Economics And Finance, Beta Gamma Sigma Cum Laude From The University Of Chicago Booth. Excelled In Studies Under World Renowned Faculty Such As Dr. Raghuram Rajan, Former Governor Of The Reserve Bank Of India