The month of June presented a blockbuster rally in the Indian stock market where major indices including the NIFTY 50 and the BSE Sensex climbed their all time high thrice this month. In June 2023, Sameeksha India Equity Fund (‘Sameeksha AIF’), a SEBI registered Category III Alternative Investment Fund gained 5.6% (net of all fees and expenses), and managed to carve an outperformance as compared to the benchmark BSE500TRI which gained 4.3%.
Fund Performance Across Various Periods
Since inception, we have maintained relatively higher levels of cash (24.6% 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 16.1% and 28.3% beating the benchmark BSE500 TRI returns of 7.7% and 24% respectively after fees before taxes. (Table 1).
| Table 1 : Fund performance2 in different periods since inception | |||
| Particulars | Portfolio (Post exp Pre tax ) % | S&P BSE 500 TRI% | Average Cash level% |
| Since inception 1 | 16.1 | 7.7 | 24.6 |
| 1 year | 28.3 | 24.0 | 10.3 |
| 6 months | 15.4 | 6.8 | 5.6 |
| 3 months | 15.4 | 13.2 | 2.2 |
| 1 month | 5.6 | 4.3 | 2.4 |
Risk Adjusted Ratios
When compared on a risk-adjusted basis, our AIF shows an even stronger performance with a risk-adjusted alpha generation of 9.6% 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 1 | ||
| Particulars | Portfolio | S&P BSE 500 TRI |
| Jensen’s Alpha (x) | 9.6 | 0.0 |
| CAPM Beta (x) | 0.5 | 1.0 |
| Sharpe Ratio (x) | 1.5 | 0.6 |
| R-Squared (%) | 73 | 100 |
| Treynor (x) | 26.0 | 8.4 |
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 30th June, 2023, we are ranked 11th out of 22 AIFs (Table 3). We are ranked in the 6th Decile among 22 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 | 28.3% |
| Average | 29.1% |
| Median | 28.3% |
| Median Among Top 5 AIFs | 39.2% |
| Sameeksha AIF Rank within the Multicap Category | 11th out of 22 |
| Sameeksha AIF Decile1 Rank within the Universe | 6th Decile |
| Sameeksha AIF Percentile Rank | Top 46% |
Analyzing The Sector Performance During The Month
During the month, indices that showed growth this month include Finance, Automobile & Ancillaries, Healthcare, Infrastructure and, Bank. For Sameeksha PMS, the Diamond & Jewellery, Aviation, Healthcare and IT sectors were outperformers compared to the benchmark. However, what hurt us is the lack of exposure towards the Infrastructure sector where we missed out on participating in the upturn. Below is the attribution analysis for the month of June 2023 (Table 4).
| Table 4: SectorWise Attribution Analysis for the month of June 2023 | |||
| Sector | Portfolio Contribution | Benchmark 1 Contribution | Difference |
| Diamond & Jewellery | 0.80% | 0.08% | 0.72% |
| Aviation | 0.60% | 0.02% | 0.58% |
| Healthcare | 0.91% | 0.43% | 0.48% |
| IT | 0.54% | 0.17% | 0.37% |
| Electricals | 0.26% | 0.02% | 0.24% |
| Trading | 0.21% | -0.03% | 0.24% |
| Retailing | 0.25% | 0.10% | 0.15% |
| Hospitality | 0.12% | 0.00% | 0.12% |
| Finance | 0.79% | 0.71% | 0.08% |
| Gas Transmission | 0.00% | -0.02% | 0.02% |
| Mining | 0.00% | -0.02% | 0.02% |
| Bank | 0.29% | 0.28% | 0.01% |
| Textile | 0.02% | 0.02% | 0.00% |
| Paper | 0.00% | 0.00% | 0.00% |
| Ratings | 0.00% | 0.00% | 0.00% |
| Media & Entertainment | -0.02% | -0.02% | 0.00% |
| Logistics | 0.00% | 0.01% | -0.01% |
| Abrasives | 0.00% | 0.01% | -0.01% |
| Miscellaneous | 0.00% | 0.01% | -0.01% |
| Alcohol | 0.00% | 0.01% | -0.01% |
| Ship Building | 0.00% | 0.01% | -0.01% |
| Diversified | 0.00% | 0.01% | -0.01% |
| Non – Ferrous Metals | 0.00% | 0.02% | -0.02% |
| Realty | 0.04% | 0.07% | -0.03% |
| Consumer Durables | 0.00% | 0.03% | -0.03% |
| Agri | 0.00% | 0.03% | -0.03% |
| Plastic Products | -0.01% | 0.04% | -0.05% |
| Construction Materials | 0.00% | 0.05% | -0.05% |
| Inds. Gases & Fuels | -0.06% | 0.00% | -0.06% |
| Capital Goods | 0.07% | 0.14% | -0.07% |
| Telecom | 0.00% | 0.10% | -0.10% |
| Power | 0.00% | 0.11% | -0.11% |
| Chemicals | -0.04% | 0.09% | -0.13% |
| Insurance | 0.00% | 0.14% | -0.14% |
| FMCG | 0.00% | 0.16% | -0.16% |
| Iron & Steel | 0.00% | 0.21% | -0.21% |
| Crude Oil | 0.00% | 0.24% | -0.24% |
| Infrastructure | 0.00% | 0.30% | -0.30% |
| Automobile & Ancillaries | 0.12% | 0.44% | -0.32% |
Disclaimer – The information contained in this update is provided by our fund accounting platform and is not audited.
