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Some multicap PMS strategies deliver up to 21% returns in 5 years

The multicap strategies of most Portfolio Management Services are benchmark agnostic and invest in 3-4 emerging long-term industry trends

November 10, 2022 / 12:36 PM IST
It’s not just mutual funds that fancy multi-cap strategies. Even Portfolio Management Services (PMS) have multi-cap strategies. A multi-cap strategy allows fund managers to invest across stocks, sectors, styles, cycles and market capitalisation. Per PMSBazaar data, there are 150 PMS multicap strategies available in the market, with assets amounting to the lion’s share of overall assets managed by PMS managers. Madanagopal Ramu – Head of Equities – Sundaram Alternates, says that different PMS managers have different styles when managing multi-cap strategies. “It could be either growth or value, or a blend of both,” he says. Ramu adds that unlike a mutual fund multi-cap fund, a PMS’s strategy is benchmark-agnostic and can run a concentrated portfolio. Here, we list the top 10 multi-cap PMS strategies in terms of their returns over the last 5 years. Only those that have disclosed their portfolios were considered. Returns displayed here are as per the Securities and Exchange Board of India-defined Time-Weighted Rate of Return (TWRR) method. Return and portfolio value are as of September 30, 2022. The cash component is not mentioned in the break-up below to round it off to 100%. Source: PMSBazaar.
It’s not just mutual funds that fancy multi-cap strategies. Even Portfolio Management Services (PMS) have multi-cap strategies. A multi-cap strategy allows fund managers to invest across stocks, sectors, styles, cycles and market capitalisation. Per PMSBazaar data, there are 150 PMS multicap strategies available in the market, with assets amounting to the lion’s share of overall assets managed by PMS managers. Madanagopal Ramu – Head of Equities – Sundaram Alternates, says that different PMS managers have different styles when managing multi-cap strategies. “It could be either growth or value, or a blend of both,” he says. Ramu adds that unlike a mutual fund multi-cap fund, a PMS’s strategy is benchmark-agnostic and can run a concentrated portfolio. Here, we list the top 10 multi-cap PMS strategies in terms of their returns over the last 5 years. Only those that have disclosed their portfolios were considered. Returns displayed here are as per the Securities and Exchange Board of India-defined Time-Weighted Rate of Return (TWRR) method. Return and portfolio value are as of September 30, 2022. The cash component is not mentioned in the break-up below to round it off to 100%. Source: PMSBazaar.
Solidarity Advisors — Prudence Inception date: May 11, 2016 Large, mid and small-cap stocks break-up (%): 48:8:43 Investment attributes: Invests in compounding stories (companies with tailwinds of growth that are focused on disciplined growth around a core business definition, and where success is reflected in an expanding moat and increasing market share and ROE).
Solidarity Advisors — Prudence
Inception date: May 11, 2016
Large, mid and small-cap stocks break-up (%): 48:8:43
Investment attributes: Invests in compounding stories (companies with tailwinds of growth that are focused on disciplined growth around a core business definition, and where success is reflected in an expanding moat and increasing market share and ROE).
SBI MF — ESG Portfolio Inception date: Aug 8, 2016 Large, mid and small-cap stocks break-up (%): 23:30:37 Investment attributes: Follows a mid- and small cap-biased strategy, investing in companies that are big beneficiaries of economic growth, as well as niche businesses with a conducive outlook for growth and longevity.
SBI MF — ESG Portfolio
Inception date: Aug 8, 2016
Large, mid and small-cap stocks break-up (%): 23:30:37
Investment attributes: Follows a mid- and small cap-biased strategy, investing in companies that are big beneficiaries of economic growth, as well as niche businesses with a conducive outlook for growth and longevity.
ITUS Capital Advisors — Fundamental Value Fund Inception date: February 1, 2017 Large, mid and small-cap stocks break-up (%): 21:46:19 Investment attributes: Invests in companies that have a consistent history of free cash flow growth and a return on capital employed consistently over cost of capital.
ITUS Capital Advisors — Fundamental Value Fund
Inception date: February 1, 2017
Large, mid and small-cap stocks break-up (%): 21:46:19
Investment attributes: Invests in companies that have a consistent history of free cash flow growth and a return on capital employed consistently over cost of capital.
IIFL —Multicap PMS Inception date: December 1, 2014 Large, mid and small-cap stocks break-up (%): 65:12:19 Investment attributes: Invests in a concentrated basket of 20-25 stocks with a bias towards large-cap stocks. It looks for stocks that are available at a significant discount to their intrinsic value and provide earnings visibility.
IIFL —Multicap PMS
Inception date: December 1, 2014
Large, mid and small-cap stocks break-up (%): 65:12:19
Investment attributes: Invests in a concentrated basket of 20-25 stocks with a bias towards large-cap stocks. It looks for stocks that are available at a significant discount to their intrinsic value and provide earnings visibility.
Sundaram Alternates —Voyager Inception date: October 1, 2011 Large, mid and small-cap stocks break-up (%): 45:22:21 Investment attributes: Follows a CORE and Satellite approach.
Sundaram Alternates —Voyager
Inception date: October 1, 2011
Large, mid and small-cap stocks break-up (%): 45:22:21
Investment attributes: Follows a CORE and Satellite approach.
Narnolia — Multicap Strategy Inception date: March 28, 2012 Large, mid and small-cap stocks break-up (%): 75:12:12 Investment attributes: It filters stocks through a proprietary model, which considers Fundamental and quantitative data over multiple years.
Narnolia — Multicap Strategy
Inception date: March 28, 2012
Large, mid and small-cap stocks break-up (%): 75:12:12
Investment attributes: It filters stocks through a proprietary model, which considers
Fundamental and quantitative data over multiple years.
Buoyant Capital — Opportunities Inception date: June 1, 2016 Large, mid and small-cap stocks break-up (%): 36:14:38 Investment attributes: The key attribute of this fund lies in generating cross-cycle alpha.
Buoyant Capital — Opportunities
Inception date: June 1, 2016
Large, mid and small-cap stocks break-up (%): 36:14:38
Investment attributes: The key attribute of this fund lies in generating cross-cycle alpha.
Sundaram Alternates — SISOP Inception date: February 1, 2010 Large, mid and small-cap stocks break-up (%): 52:22:9 Investment attributes: Strategy skewed towards large-caps and concentrated with 15 stocks.
Sundaram Alternates — SISOP
Inception date: February 1, 2010
Large, mid and small-cap stocks break-up (%): 52:22:9
Investment attributes: Strategy skewed towards large-caps and concentrated with 15 stocks.
ASK Investment Managers — Indian Entrepreneurship Portfolio Inception date: January 25, 2010 Large, mid and small-cap stocks break-up (%): 57:40:2 Investment attributes: If focuses on capital preservation and capital appreciation over time through long-term investments in high-quality and growth companies.
ASK Investment Managers — Indian Entrepreneurship Portfolio
Inception date: January 25, 2010
Large, mid and small-cap stocks break-up (%): 57:40:2
Investment attributes: If focuses on capital preservation and capital appreciation over time through long-term investments in high-quality and growth companies.
Right Horizons — Flexi Cap Inception date: November 29, 2012 Large, mid and small-cap stocks break-up (%): 34:26:34 Investment attributes: Has a diversified equity portfolio that endeavours to achieve long-term capital appreciation and generate returns by investing across market caps.
Right Horizons — Flexi Cap
Inception date: November 29, 2012
Large, mid and small-cap stocks break-up (%): 34:26:34
Investment attributes: Has a diversified equity portfolio that endeavours to achieve long-term capital appreciation and generate returns by investing across market caps.
Dhuraivel Gunasekaran