Fund managers lock in gains

Booming markets saw fund managers resorting to profit taking in the week under review. As the markets rallied for the eight straight days, owing to year-end buying by Foreign Institutional Investors (FIIs) and renewed hopes of earnings growth, the Smart Portfolios fund managers take to opportunity to book gains in their investments. The S&P CNX 500 Index’s benchmark portfolio value, which had slipped below the threshold Rs 10-lakh mark, has moved back above Rs 10 lakh to Rs 10.20 lakh, up almost 2 per cent since the inception of Smart Portfolios season 3 on September 1, 2010.

In the last week, fund managers executed 21 sell-side trades of their total 32 trades, wherein they were net sellers of stocks to the tune of Rs 6.88 lakh. In fact, Shishir Bajpai and Vinay Khattar were the only two active fund managers, while Ajay Parmar remained on the sidelines. Bajpai executed only sell-side trades to the tune of Rs 4.76 lakh, while Khattar was a net seller of stocks worth Rs 2.12 lakh.

AJAY PARMAR
(Head Research Institutional Equities, Emkay)
Ajay Parmar continues to remain on the sidelines for nearly three months now. His last transaction dates January 10, 2011. Of the 15 stocks in his portfolio, only four are trading above his cost price. Insecticides India is the major gainer — up nearly 29 per cent from the acquisition price. eClerx Services and Greaves Cotton are the other major gainers — up 18 and 15 per cent, respectively. On the other hand, Bajaj Hindusthan and Manali Petrochemicals are the major laggards — down 41 and 39 per cent, respectively. Parmar’s portfolio is valued at Rs 9.49 lakh.
 

AJAY PARMAR, Head Research Institutional Equities, Emkay
Top Holdings	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
Torrent Pharma	599.00	580.45	0.87
Natco Pharma	291.03	275.20	0.76
eClerx Services	546.00	644.95	0.64
Infinite Comp	181.60	155.95	0.47
Greaves Cotton	83.30	95.90	0.48
Total investments			6.65
Cash			2.84
Net worth			9.49

SHISHIR BAJPAI
(Senior Vice President, IIFL Private Wealth)
Shishir Bajpai booked gains in all his five sell-side transactions. ICICI Bank was the most profitable trade, with a gain of 9.7 per cent, followed by average returns of around 3 per cent each on his investments in Reliance Industries, Dr.Reddy’s and ITC. After offloading, Bajpai has now increased his cash to Rs 7.33 lakh. Currently, he holds just five stocks in his portfolio. Of these, MOIL is the only stock tthat is trading above his cost price. Pantaloon Retail is the major laggard in his portfolio, with a loss of 16.6 per cent. Bajpai’s net worth is now valued at Rs 13.28 lakh, up almost 33 per cent.
 

SHISHIR BAJPAI, Senior Vice President, IIFL Private Wealth
Top Holdings	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
Pantaloon Retail	310.34	258.70	1.29
Coal India	346.60	346.50	1.21
Deccan Chronicle	80.70	80.30	1.20
MOIL Ltd	381.00	394.75	1.18
IFCI	53.25	52.60	1.05
Total investments			5.95
Cash			7.33
Net worth			13.28

VINAY KHATTAR
(Research Head, Edelweiss Wealth Management)
Vinay Khattar was fairly active, especially, in the last two trading days. He executed a total of 27 trades, of which just 11 were on the buy side. His gross purchases for the week amounted to Rs 5.05 lakh, while gross sales stood at Rs 7.17 lakh. Among his exits, Venkys (India) proved to be the most profitable investment, with a gain of 21 per cent, followed by Zee Learn (18 per cent) and Dhanalakshmi Bank (13.7 per cent). He also locked in gains of over 10 per cent each on his investments in Mirza International and YES Bank. Khattar has employed cash into Andhra Pradesh Paper Mills, Smartlink Network, KEC International and Prime Focus. Meanwhile, he has consolidated his holdings in ARSS Infrastructure and Havells India. His net worth now stands at Rs 11.14 lakh, up 11.35 per cent, and he holds cash of Rs 4.82 lakh.
 

VINAY KHATTAR, Research Head, Edelweiss Wealth Mgmt
Top Holdings	Cost price (Rs)	Current price (Rs)	Value (Rs lakh)
AP Paper Mills	236.95	284.35	1.33
Havells India	363.13	370.70	1.11
ARSS Infra	510.15	528.45	0.95
Patel Engg	147.25	140.00	0.91
Lovable Lingerie	265.70	245.35	0.61
Total investments			6.32
Cash			4.82
Net worth			11.14