Smart Portfolios: Fund managers await consolidation

Having tweaked their trading strategies based on the performance of the markets, all the fund managers of Smart Portfolios' Season 4 remained active in the past one week. The fund managers, this week, comment on their portfolios and share a few of their best bets.

For the week, Rikesh Parikh’s net worth stands at Rs 1,022,000, up 2.2 per cent; Ashish Mittal’s net worth is at Rs 1,044,000, up 4.35 per cent; Alex Mathews’ net worth is at Rs 1,048,000, up 4.76 per cent; and Ajay Parmar’s net worth totals Rs 1,135,000, up 13.55 per cent. 

Rikesh Parikh, VP Equity Strategies, Motilal Oswal Securities

RIKESH PARIKH, VP Equity Strategies, Motilal Oswal Securities
Top Holdings	Cost Price (Rs)	Current price (Rs)	Value (Rs lakh)
Power Grid Corporation of India	101.93	108.80	0.33
United Phosphorus	150.43	150.60	0.30
Oriental Bank of Commerce	260.89	298.15	0.30
Mcleod Russel India	217.44	197.20	0.30
PTC India	48.42	54.95	0.27
Total investments			2.88
Cash			7.34
Net worth			10.22

Commenting on his portfolio Parikh said, "I partially exited from mid cap banks as the move was sharp in midcap banking space." Parikh carried out eight transactions during the period under review, most of which were on the sell-side. He included Pidlite Industries, United Phosphorous and Punjab National Bank in his portfolio, while he exited from Dena Bank, Oriental Bank of Commerce and Mcleod Russel India. He incurred a loss of nearly 21% on having let go of Mcleod Russel India and sold Oriental Bank of Commerce at a profit of 33%.

His current top holdings include Power Grid Corporation of India, United Phosphorous, Oriental Bank of Commerce, Mcleod Russel India and PTC India.

 

Ashish Mittal, Fund Manager – PMS, Centrum Wealth

ASHISH MITTAL, Centrum Wealth, Fund Manager- PMS
Top Holdings	Cost Price (Rs)	Current price (Rs)	Value   (Rs lakh)
MRF	6816.10	8614.10	0.86
Balmer Lawrie & Company	618.48	568.55	0.74
Karur Vysya Bank	372.59	396.05	0.67
Bharat Electronics	1582.70	1544.75	0.62
Tide Water Oil	6751.40	7720.60	0.62
Total investments			9.49
Cash			0.94
Net worth			10.44

"Indian markets were trading at cheaper valuations than what the fundamentals commanded. Even after the recent rally, the market is trading 17.3x trailing twelve months PE as compared to 23.5x PE in July 2007 and is now attractively valued. The fall of 2011 led to indices losing about 24% while there were individual stocks that lost anywhere between 40-50%," commented Mittal.

He believes investors can make use of any dips for deploying cash in phases, over the next month. In his opinion, Feb/March 2012 are likely to be eventful months. "The important events to watch out for in the near term will be the UP election results, which could add a little to the uncertainty, and the annual budget in March, which should set the tone for more fiscal consolidation and economic reforms," he said. He maintains an optimistic view on three sectors- Auto, Capital Goods and Metals and also continues to focus on three themes - Agri, OPSB and Fuel/Energy.  

Mittal carried out three transactions during the week. He bought NMDC and sold Yes Bank, on which he made a profit of 22%. He also exited from Cairn India and earned a profit of nearly 20%.

His top holdings, as of now include MRF, Balmer Lawrie & Company, Karur Vysya Bank, Bharat Electronics and Tide Water Oil.

Alex Mathews, Head (Technical and Derivatives Research), Geojit BNP Paribas Financial Services

ALEX MATHEWS, Geojit BNP Paribas Financial Services Ltd, Head Technical and Derivatives Research
Top Holdings	Cost Price (Rs)	Current price (Rs)	Value  (Rs lakh)
Bajaj Auto	1678.19	1701.70	0.85
Hero MotoCorp	2008.46	1993.85	0.80
Infosys	2752.97	2809.90	0.56
Aptech	90.68	89.15	0.45
Tata Coffee	881.50	866.80	0.43
Total investments			4.78
Cash			5.69
Net worth			10.48

"This week I concentrated on auto mobile stocks especially those of two wheeler companies. Among the auto sales numbers of companies, two wheeler companies stood out and put up great performance. Also, going forward as I expect the interest rates to come down, we may see some more growth in this segment. I limited my buying to these two stocks this week as I was waiting for a consolidation in the market. Going forward if the markets show strength and closes above 5440, then I may add more to the portfolio."

He carried out a total of two transactions during the period under review. He bought Hero MotoCorp and Bajaj Auto. His current top holdings include Bajaj Auto, Hero MotoCorp, Infosys, Aptech and Tata Coffee.

Ajay Parmar, Co-Head Investment Banking, Emkay Global

AJAY PARMAR, Co-Head- Investment Banking, Emkay Global
Top Holdings	Cost Price (Rs)	Current price (Rs)	Value   (Rs lakh)
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