Performance Update: Marginal Recovery In April Following Sharp Sell Off In March

Through this period of extreme volatility, we have managed to retain our outperformance versus benchmarks (Table 1). It is constructive to note that not a single index fund exists today to mimic CNX500, the broad based market index we benchmark ourselves against. We would submit that if an index fund did exist, the managers of such a fund would find it hard to track the index because of liquidity issues with stocks outside of top 50-100 names. In other words, such a strategy would not really work at meaningful AUM.  As such, our outperformance versus CNX500 should be viewed in that context. Having said that, we are certainly not happy with the performance we have delivered. We understand quite well that investors look to us to deliver higher positive absolute returns. We will continue to work hard towards that goal. 

Our inception till date TWRR returns as well as outperformance have marginally improved  as of 17th April 2020 (Table 2). However, we understand that this data is very volatile.

For the year ended March 31st, 2020, We generated -13% return for the year. While that compares well versus major relevant indices (Table 3), we are not happy with a negative absolute return. We could have certainly done better by moving into cash a bit earlier. We note also that hedging of the portfolio through index derivative would have also helped. On a three year basis, we achieved zero return. As such, this must be a tough reading for some of our investors. Only thing we can say is that these readings are hopefully right at the bottom of the market. 

We have performed relatively well compared to the PMS universe as well as mutual funds (Table 4). 

Absolute performance is very important to many investors. However, risk adjusted performance ratios indicate the fund manager’s abilities more accurately. We provide such data in Table 5. 

Disclaimer : The information contained in this newsletter has not been verified by SEBI.

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