About 41 PMS mid- & smallcap schemes gave negative returns in Feb; are good times over?
Midcap and smallcap schemes managed by portfolio management services firms saw negative returns in February. Equitree Capital Advisors, Saurabh Mukherjea, Aequitas Investment Consultancy, Ambit Investment Advisors, Geojit Financial Services, Equirus Wealth, PGIM India, and Care Portfolio Managers were among the firms that gave negative returns.
MUMBAI - After consistently outperforming in the last one year, the tide changed for the and managed by management services firms, with as many as 41 of them giving negative in February.About 20 mid- and small cap PMS funds have given negative returns of more than 2-7% in a month, data by PMS Bazaar showed.
The worst performing fund was that of Equitree Capital Advisors as its Emerging Opportunities strategy gave 7.2% negative returns.
Saurabh Mukherjea’s Little Champs smallcap strategy gave negative returns of 4.4% in a month, while his Rising Giants midcap strategy gave negative returns of 3.6%.
Aequitas Investment Consultancy, a PMS run by Siddhartha Bhaiya, who has always been a mid- and smallcap investor, also disappointed investors, as his India Opportunities Product smallcap scheme gave 3% negative returns last month.
But on a 1-year basis, this scheme has given 93% returns, which is the best among all smallcap strategies.
Ambit Investment Advisors’ Emerging Giants smallcap strategy was also in the list, giving a negative return of 3.8%.
’ small & midcap PMS fund, Equirus ’s smallcap fund, PGIM India’s small & mid-cap fund, and Care Portfolio Managers’ small- & midcap fund gave negative returns of over 2-4%.
Since the past few months, money managers and even regulators have voiced concerns over the building froth in midcap and smallcap and the unprecedented inflows into the smallcap and midcap funds.
Last month, SEBI asked the Association of Mutual Funds in India (AMFI) to put a policy in place to protect the interest of all investors.
SEBI and AMFI have directed fund houses to provide additional disclosures for small and mid-cap funds from the current month, which includes valuation, volatility, investor concentration and stress tests.
OUTLIERS
While mid and smallcap funds seemed to have been out of favour last month, multicap and largecap PMS funds did well, giving positive returns of up to 7%. Torus ORO PMS’ Large & Midcap fund gave returns of 6% in a month, while two of Carnelian Asset Management’s multicap strategies gave 5% returns.
Stallion Asset Management’s Rs 1,319 crore multicap strategy gave positive returns of more than 4% in a month.
While February data does show the froth in midcap and smallcap stocks coming off, whether its a temporary blip or something more will need to be closely tracked in the months to come.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Source: Stocks-Markets-Economic Times
