Basant Maheshwari Shows Who’s Boss By Emerging As “Best PMS Fund Performer”

NBFC stocks led to ‘worst performer’ tag ….

In September 2018, Basant Maheshwari suffered the ignominy of being awarded the dubious title of ‘worst performing portfolio management firm’ by Bloomberg.

Basant Maheshwari Wealth Advisers (@BMTheEquityDesk) was the worst performing portfolio management firm in September.

Read more: https://t.co/h5xVCt9DX3 pic.twitter.com/uopKgiA6Mq

— BloombergQuint (@BloombergQuint) October 10, 2018

Basant’s PMS Fund had suffered a colossal loss of 21.5% in just the one month.

The meltdown happened because Basant had reposed his faith in NBFC and HFC stocks and loaded his portfolio with truckloads of them.

Unfortunately, all NBFC and HFC stocks crashed in September 2018 owing to the ILFS liquidity crises.

Basant took the blow on his chin.

All housing finance companies crack!
DHFL now down 25%
Indiabulls Housing down 10%
Repco down 5%
Can Fin down 5%

— Mubina Kapasi (@MubinaKapasi) September 21, 2018

Chola Fin, Dewn Hsg, Indiabulls Hsg, Shriram Transport – all these stocks down and how !!

— Yatin Mota (@YatinMota) September 21, 2018

NBFCs thrashed

— Darshan Mehta (@darshanvmehta1) September 21, 2018

DOWN 20% NOW… whats going on here ? https://t.co/qYnpefY4Dl

— Yatin Mota (@YatinMota) September 21, 2018

WHAT A DAY… A Mutual Fund (@dspmf) sells debt paper to prepare for a possible contingency (#ILFS), the panic spills over on the equity side (given risk aversion) I UNDER STAND THAT. But this causes a 50% crash in the stock… DON'T get that.. Will #SEBI explain this.. #DHFL

— Surabhi Upadhyay (@SurabhiUpadhyay) September 21, 2018

Basant stayed defiant in the face of adversity

It is notable that Basant was not cowed down by the meltdown in the NBFC and HFC stocks.

Instead, he adopted a belligerent stance and dared the naysayers.

So NBFC isn’t quite the new dirty four letter word ? Let’s see what the commentators have to say on this now? Neeche mein lene nahi diya kisi ko ?

— Basant Maheshwari (@BMTheEquityDesk) October 10, 2018

Please short it 🙂

— Basant Maheshwari (@BMTheEquityDesk) October 10, 2018

Basant also issued the clear-cut advice that we should take advantage of the meltdown and rush to grab the NBFC & HFC stocks.

Basant Maheshwari #OnCNBCTV18 says don't think Govt can let NBFC sector fail. Think earnings will support market going forward, should go & buy high quality names right now, think it’s a good time to invest in quality names pic.twitter.com/fanh6Hp7Mh

— CNBC-TV18 (@CNBCTV18Live) September 24, 2018

Technical Sell-Off Has Created Brilliant Opportunity To Buy NBFC Stocks: Madhu Kela https://t.co/LzmJLo1Dsk pic.twitter.com/C0P9nhJFYS

— RJ Stocks (@RakJhun) September 22, 2018

…. NBFC stocks lead to ‘best performer’ tag

Today, the wheel has come a full circle.

The ILFS liquidity crisis is almost a forgotten memory now.

The swift and proactive stance of the Government of providing liquidity to the NBFCs helped defuse the crisis.

SBI today stepped up substantially a facility for purchasing portfolio of assets from NBFCs to provide liquidity to NBFCs. SBI would buy such portfolios up to a total amount of Rs. 45000 cr. This measure should alleviate liquidity concerns to a great extent.

— Subhash Chandra Garg (@SecretaryDEA) October 9, 2018

Sonia Shenoy rightly summed up the situation by saying that “Confidence has returned to the NBFC industry”.

Very imp takeaways from interview with Keki Mistry ,HDFC
– Confidence returned to the NBFC industry
– Commercial papers have been rolled over or redeemed
– no need for liquidity window by RBI since crisis has been resolved
– IL&FS was a stray case, dont expect a repeat

— Sonia Shenoy (@_soniashenoy) November 16, 2018

The spectacular operational performance of flagships like Bajaj Finance (40% AUM growth with improving margins) despite the adverse market conditions also helped revive confidence of investors.

What a class show from this company.. The #NBFC crisis was supposed to separate the men from the boys, and its happening now. 40% AUM growth with improving margins. Mgmt confident of sustaining the momentum. #stocks #earnings #Bajajfinance https://t.co/HKEqxzoS32

— Surabhi Upadhyay (@SurabhiUpadhyay) January 29, 2019

The end result is that Basant Maheshwari has regained his spot as “best performer in February 2019”.

Basant raked in 4.7 percent gain while Enam Asset Management came second with a 4% gain.

#BQBlueExclusive | Find out how India’s top 50 portfolio managers fared in February. @sajeetkm reportshttps://t.co/BnPwfuvTVV

— BloombergQuint (@BloombergQuint) March 8, 2019

What about Porinju Veliyath’s Equity Intelligence?

Porinju Veliyath’s Equity Intelligence PMS Fund also put up quite a spirited performance in February 2019.

However, it could not give a positive return and closed with a loss of 1.8%.

The worrying part is that the AUM is on a decline. In September 2018, the AUM was Rs. 1,246 crore.

It is presently Rs. 1,089 crore.

Porinju will have to turn on his charm to win back the confidence of his clients and plug the leakage ASAP.

Kenneth Andrade’s Old Bridge Capital Management awarded place in list of “worst performing portfolio managers”

Kenneth Andrade’s Old Bridge Capital Management had a disappointing performance in February 2019.

It lost 3.85% on an AUM of Rs. 1,589 crore.

We will have to conduct an in-depth study of Kenneth Andrade’s portfolio to understand the reasons for the poor show and explore the remedies available to him to rectify the situation!