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Tuesday, December 4, 2012

Value Oriented Active Strategy Service


Indian Equity Portfolio Average Net Return of 45%+ in last 7 Months*. 

Out-Performed Indian Equity Index Benchmark by 30%.

Performance: Our Value Oriented Indian Equity Portfolio using Active Strategy is up by 45%+ during May 2012 to Dec 2012. We have out-performed the benchmark Index during this period by 30%+.

Overview: In the year 2012, we saw several global and local issues affecting market sentiment negatively. Despite all the gloom and doom reports, markets throughout the globe saw light at the end of tunnel and rallied. Warren Buffett has said, there are 3 things to master to do well in investing field. First one is learn how to value a company, second is to know how the market works and thirdly to have an even temperament through thick and thin. Due to our focus on finding high quality undervalued companies, we stick to our investment tenets and what we can find out more about these companies. Only thing which we may look time to time is the overall market P/E, presently around 17 which is moderate. 

Highlights: On May 23rd 2012, we came out with 20 investment ideas and created an equally weighted portfolio. Out of these top 20 companies, some performed very well like PVR, Bannariamman Sugars, Symphony Ltd., Manappuram Finance. One investment idea specifically didn't performed during the next 3 months was Torrent Power. Overall portfolio was up 20%+ in little over 3 months. On Sep 3rd 2012, we came out with total 16 stocks portfolio where 12 new ideas and 4 old ideas from May 23rd were considered. Portfolio was again equally weighted and till Dec 2012 provided returns around 20%+. PVR, Mangalam Cement, Persistent Systems, JB Chemicals & Pharmaceuticals did excellent. Foseco India didn't performed to our expectation.

Overall since May 2012, in less than 7 months, portfolio is up 45%+ out-performing the market by 30%.

Outlook for 2013: Downside risk is limited as we move into 2013 with better earnings forecast, more liquidity in the system and improved market sentiments. Irrespective, we don't worry much about things which are not in our hands, on the contrary there are few things which are in our hands, like to review the companies we invest in on the most stringent valuation criteria, management quality, strength of economic moats to make sure there is not much downside risk, upside is taken care of when the market realizes inherent intrinsic value.

Value Investing is a life long humbling learning process where we try to gain more when we get it right than we lose when we get it wrong.

Happy Investing in 2013!

Century Partners

For more information in this regard, kindly contact us, thanks.

Disclaimers: This summary is for generic information purpose only and express our views and not an offer to buy or sell. 
*Past performance is not a guarantee of future results.