Edelweiss Stuns With 41% Alpha Gain In 2017-18, Promises 53% Gain In 2019

43% gain in 2016-17, 34% gain in 2017-18

Edelweiss appears to have discovered the magic formula for defying the Bears and churning out massive returns from their stock picks.

Their recommendation for 2016-17 delivered massive average gains of 43% as seen below:

The Nifty gave a return of only 14% which means that the Alpha is 29%.

The excellent show continued in 2017-18 as well with the stock picks giving an average return of 34%.

The Mid-cap Index lost 7% in the same period which means that the Alpha is a hefty 41%.

Radico Khaitan was a stunner with a massive gain of 135%.

Incidentally, Radico Khaitan is a core stock in Dolly Khanna’s portfolio of multibagger stocks.

NIIT Technologies also displayed amazing grit by surging 96%.

However, MCX was a major disappointment with a loss of 37% as was National Aluminium with a loss of 15%.

53% gain expected in 2018-19

Edelweiss is very bullish about their stock picks for 2018-19.

They have handpicked 5 stocks and foreseen a hefty return of 53% from them.

The chosen five stocks are the following:

It is notable that Firstsource Solutions is the star of the portfolio with expected gains of 75%.

This is a sensible pick because the stock is already a star in Rakesh Jhunjhunwala’s portfolio.

Firstsource Solutions has enriched Rakesh Jhunjhunwala with 50% YoY return which clearly implies that it has the potency to deliver the expected mega gains of 75% in 2019.

Muthoot Finance is also one of darlings of the portfolio with expected gain of 57%.

Muthoot Finance is the younger sibling of Muthoot Capital which is one of the trusted confidantes in Dolly’s Khanna’s portfolio.

Edelweiss has given a succinct commentary for each stock which can be read from the report.