MC Special Podcast | Stronger companies with quality management could outperform in 2020; here’s why

Benchmark indices closed 2019 with double-digit gains with strong index names leading the charge from the front. The S&P BSE Sensex rallied by over 14 percent while the Nifty50 gained 12 percent in 2019.

Will the winners of 2019 continue to perform in 2020? Vaibhav Sanghavi, Co-CEO & Fund Manager at Avendus Capital Alternate Strategies, in a podcast with Moneycontrol feels that the strong companies with quality management should continue to outperform in 2020 as well.

If you have seen turbulence in the last 18 months fuelled by concerns over liquidity in the NBFC space, higher interest rates, as well as formalisation in the economy after the implementation of GST, gave an edge to strong companies, he said.

“As a results of the above given factors – stronger companies continue to grow much strong and at the same time they are those companies who have adequate capital, adequate risk management capabilities, and quality management,” added Sanghavi.

He further added that these strong companies will continue to grow stronger. And, the probability of these larger companies to outperform compared to larger universe despite higher valuations.

Performance of Funds:

The moto of Avendus Alternate Strategies is to deliver a risk-adjusted returns. We have three products – Avendus Absolute Return Fund, Avendus Enhanced Return Fund, and Avendus India ESG Fund.

Avendus Absolute Return Fund, Avendus Enhanced Return Fund are focused on mitigating the market risk aspect of investing while the ESG or the Environmental Social and Governance product is focused on mitigating the tail risk of the business.

Avendus India ESG Fund is India’s first ESG fund. It is a Category III Alternative Investment Fund (AIF) focused on providing investors the opportunities for long term risk-adjusted returns by investing in companies that practice sound Environmental Social and Governance (ESG) policies.