Portfolio management services (PMS) are quite sought after by rich investors. With a minimum Rs 25 lakh as investment, the quality of PMS strategies and the skills of investment managers are quite good, especially in large PMS providers. Since investors shell out quite a bit of money, performance is always closely tracked. This ain’t some mutual fund! October 2018 seems to have been a month of redemption for PMS managers, after a horrendous September. Even as overall markets tanked by 5% in October, quite a few PMS firms had beaten the market, i.e. they fell much less or even generated positive returns. RupeeIQ takes a look at some notable PMS providers, with at least Rs 1,000 crore assets, who have performed well compared to the market.
Quantum Advisors – Quantum Advisors, the sponsor of Quantum Asset Management Company (QAMC) and Quantum Mutual Fund (QMF), has a PMS licence. Over the years, it has become quite big in PMS asset management. It manages Rs 14,169 crore of money under discretionary PMS. In October, Quantum’s portfolio manager as on month end in % delivered -2.06% (on a weighted average basis for all clients). This is less than half of the losses what investors tracking Nifty witnessed.
Motilal Oswal Asset Management – The Motilal PMS, with a 14 year + track record launched in March 2003, manages about Rs 13,627 crore of money. It’s got 40,000 clients, with mostly being resident individual investors. In October, the PMS’s portfolio manager as on month end in % delivered -2.5% (on a weighted average basis for all clients).
Enam Asset Management – Managing close to Rs 13,500 crore PMS money and very popular among HNIs, Vallabh Bhanshali’s Enam is one the biggest players in this space. In October 2018, Enam PMS delivered -0.18% (on a weighted average basis for all clients). In a market which fell 5%, a near zero loss return in a big sigh of relief.
Alchemy Capital Management – With Rakesh Jhunjhunwala as a co-founder, Alchemy needs no introduction. Over the last 19 years, this PMS provider has garnered quite a big following and enjoys a client base of over 5,000 as it manages over Rs 5,000 crore money. Compared to Nifty’s 5% drop, the PMS on a weighted average basis for all clients saw -3.46% decline.
Karma Capital Advisors – In the last 10 years, Karma Capital Advisors, founded by Nikhil Desai & Rushabh Sheth, has struck a chord with many investors with absolute return mindset when it comes to investing in listed public equity markets. The PMS provider manages about Rs 2,300 crore assets. In October, the PMS provider generated 1% positive return. That’s fantastic considering the overall markets were pretty bleak.
Old Bridge Capital Management – This PMS provider is famous for its CIO, Kenneth Andrade who has a formidable 13-year track record managing some of India’s most successful equity funds. The firm manages about Rs 1,650 crore assets. It delivered 1.52% positive return in October maid a volatile market that bowed to liquidity pressures triggered by multiple defaults by IL&FS. The PMS provider has over 650 clients.