July 2014

Markets post-Election

We have witnessed an absolute return of more than 20% in all our strategies post-election results against an index return of 10%. We have seen the market’s focus returning to quality stocks at the cost of sharp fall in some of the cyclical stocks. Our conviction to stay with quality has once again paid off. Historically we have been absolutely patient investors and we wait for opportunities to arise. As per the strategy mandates we have stayed away from momentum Stocks. We have greatly benefitted from this and delivered outsized returns.

After the election results we believed that the strong political mandate will help economy move and decision making to be faster at center. In contrast to the last five years of government we believe that improvement in environment will help lot more companies to do well. This will be aided to a large extent by gradual easing in inflation figures which in turn will lead to softening of interest rates.

We launched our latest strategy “Strategic Equity” in July – 2014 for our existing investors. The idea behind the fund launch is to identify businesses which will benefit due to the change at the center and are available at attractive prices. This will help us invest in new stock ideas while we continue with our core holdings in India Equity, India Dedicated & Wonder Companies.

If you want to read our past views on the market you can read our blog below:

http://investmentstrategyindia.blogspot.in/