Mixed moves by fund managers

After two weeks of gains, the markets were back in the red as investors opted to book profits, however small, on the back of global worries. The benchmark BSE 200 index, which had rallied over 14 per cent in the preceding two weeks, declined 5.5 per cent last week. It is down over 37 per cent since the start of Smart Portfolios on September 1, 2008.

The portfolio of three of the four fund managers saw a decline in net worth, which as usual was far lesser as compared to the benchmark’s decline. The net worth of Amar Ambani's portfolio saw a marginal rise.

Only three fund managers were active last week, as Kashyap Pujara preferred to stay on the sidelines. Of the 34 total transactions, the most (14 trades) were executed by Amar Ambani, followed by 13 trades of Anand Agarwal. On the other hand, Sadanand Shetty, mostly an active fund manager, executed just seven trades all of which were on the sell side.

STATUS QUO

Kashyap Pujara
Fund Manager
Enam Direct

Kashyap Pujara played the waiting game last week. However, the fall in the market saw his net worth drop by 2.3 per cent (Rs 0.19 lakh) when compared to the previous week. Sterlite, Century Textiles and Reliance Communications are among key culprits that have pulled down his portfolio, with losses of over 40 per cent each.
 

STATUS QUO
Top Holdings	% of  assets	Cost (Rs)Price	Current price(Rs)	Value (Rs lakh)
Sterlite	11.38%	410.13	227.20	0.91
Reliance Ind	7.19%	1640.73	1148.55	0.57
ICICI Bank	4.96%	521.55	395.95	0.40
Century Textiles	4.62%	343.87	184.35	0.37
Grasim	3.20%	1175.00	1023.25	0.26
Total investments	34.11%	-	-	2.72
Cash	65.89%	-	-	5.26
Net worth	-	-	-	7.98
Returns (%)	-20.16	-	-	-

 

Among the ones that have fallen by a relatively lower margin include Reliance Industries and ICICI Bank. His net worth now stands at Rs 7.98 lakh. While cash, as a percentage of portfolio, appears to be up at 65.89 per cent (64.35 per cent in previous week), in absolute value it was constant at Rs 5.26 lakh.

OFF THE PLANE

Anand Agarwal
Fund Manager
Reliance Money

Although Anand Agarwal executed 13 trades last week, only four were on the buy side. His major move was the exit from aviation stocks. He sold his entire holdings in Jet Airways (300 shares) and Deccan Aviation (500 shares). His investment in Jet resulted in a loss of over 59 per cent (Rs 0.88 lakh), while Deccan wiped out over 62 per cent (Rs 0.24 lakh) of his invested capital in the company’s shares.
 

OFF THE PLANE
Top Holdings	% of assets	Cost (Rs) Price	Current price (Rs)	Value (Rs lakh)
Suzlon Energy	5.33%	57.44	54.55	0.44
ICICI Bank	4.84%	428.90	395.95	0.40
BHEL	4.69%	1376.00	1280.10	0.38
SBI	4.29%	1177.00	1170.10	0.35
Jaiprakash Asso	3.59%	79.70	73.50	0.29
Total investments	33.42%			2.73
Cash	65.58%			5.45
Net worth				8.18
Returns (%)	-18.19

He suffered a loss of Rs 0.22 lakh last week and his net worth now stands at Rs 8.18 lakh. These moves have led to a significant rise of 8 per cent in absolute cash levels (Rs 5.45 lakh), as compared to the previous week (Rs 5.04 lakh).

UNWINDING CONTINUES

Sadanand Shetty
Vice President
Kotak Securities

Sadanand Shetty continued to increase his cash component for the second week in a row, as he increased cash from Rs 6.76 lakh to Rs 7.78 lakh. Last week, the seven trades he executed were all on the sell side. He exited from NTPC, Bajaj Auto and Hero Honda.
 

STATUS QUO
Top Holdings	% of  assets	Cost  (Rs)Price	Current price(Rs)	Value (Rs lakh)
Bharti Airtel	3.17%	552.31	650.15	0.29
Lupin	2.58%	685.14	581.25	0.23
SBI	1.95%	1193.85	1170.10	0.18
Sun Pharma	1.58%	1006.50	1189.60	0.14
Jain Irrigation	1.53%	427.75	294.00	0.14
Total investments	13.77%	-	-	1.24
Cash	86.23%	-	-	7.78
Net worth	-	-	-	9.02
Returns (%)	-9.77	-	-	-

While he booked marginal gains in NTPC and Hero Honda, his investment in Bajaj Auto accounted for a loss of nearly 25 per cent. Currently, Jain Irrigation, with a loss of over 31 per cent, is a major drag in his portfolio, while Bharti Airtel, Sun Pharma and BHEL are giving him positive returns in the range of 18-23 per cent each. His net worth now stands at Rs 9.02 lakh.

TIMELY EXIT

Amar Ambani
Vice President (Research)
India Infoline
 

TIMELY EXIT
Top Holdings	% of  assets	Cost  (Rs)Price	Current price(Rs)	Value (Rs lakh)
Axis Bank	3.15%	526.65	494.85	0.32
NTPC	2.92%	153.30	149.25	0.30
Jaiprakash Asso	2.88%	81.30	73.50	0.29
SBI	2.86%	1215.00	1170.10	0.29
Indiabulls Real	2.78%	112.60	109.40	0.28
Total investments	17.03%	-	-	1.74
Cash	82.97%	-	-	8.48
Net worth	-	-	-	10.22
Returns (%)	2.23	-	-	-

Once again, Amar Ambani got his timing right, given his exit from BHEL, Larsen & Toubro and Tata Steel ahead of the major fall in their values. His investment in BHEL and Larsen & Toubro gave him a net return of 13 per cent and 11 per cent, respectively, while investment in Tata Steel resulted in a loss of almost 10 per cent. While he continues to remain the only fund manager with a positive return (2.14 per cent) so far, all his current holdings are quoting below the purchase price with Jaiprakash Associates (down 9.5 per cent) being the major drag. He continues to hold almost Rs 8.50 lakh in cash.