Check Out The Top High-Conviction Stock Picks Of the Best PMS Funds

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Apr 26, 2020.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

    Mar 19, 2015
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    According to popular belief, PMS Funds are skilled in picking stocks which have the highest growth prospects while quoting at the cheapest possible valuations.

    This belief has led HNIs (High Networth Individuals) to make a beeline for the PMS Funds, which has caused the Funds to effortlessly raise hundreds and thousands of crore.

    In this context, the sleuths of ET have done the sensible thing of ferreting out the high-conviction stock picks of the best PMS Funds so that we can also ride piggy-back on them without having to pay any fees.

    ASK Indian Entrepreneur Portfolio (IEP) strategy, which has a mammoth AUM of Rs. 8700 crore, has chosen Dabur India and Divi’s Laboratories as its high-conviction picks.

    Both stocks have been given an allocation in excess of 7% in the prestigious PMS Fund.

    The Fund also trusts Asian Paints, Pidilite Industries and PI Industries and has made these its major holdings.

    The same game plan is visible in the “ASK India Select strategy” PMS Fund.

    This Fund holds Divi’s Labs, HUL, Asian Paints, Dabur India and PI Industries in its portfolio.

    The reason for the fascination for Asian Paints is not hard to find.

    A strong balance sheet and debt-free status will support the premium valuation for Asian Paints,” Geojit said pithily.

    Similarly, HUL is not a stock that one should mess around with.

    Instead, it deserves to be given the highest respect.

    HUL will benefit from high demand for hygiene products such as hand sanitizers, handwash, soaps etc. Personal wash brings in around 20-25 per cent revenue for HUL. Majority of HUL’s products are defensive in nature and are able to withstand any slowdown in consumption. The fall in crude oil prices and other cost-cutting initiatives undertaken by the company will lead to further expansion in Ebitda margin,” the experts at KR Choksey rightly said.

    Hiren Ved’s Alchemy’s Select Stock scheme, which boasts of an AUM of Rs 2,261 crore, has confidence in Bajaj Finance and United Spirits.

    Both stocks are presently in the doldrums owing to the lockdown.

    Bajaj Finance is facing the specter of incalculable NPAs as its unsecured debtors may go bust.

    Sakshi Batra of moneycontrol has given a succinct yet brilliant explanation of the woes plaguing Bajaj Finance.

    United Spirits’ sales are plunging as tipplers prefer to stay sober at home.

    However, both stocks can be expected to surge back into glory as soon as normalcy returns.

    Hiren Ved has also cherry picked Divi’s Labs, ICICI Bank and Titan for the Alchemy’s Select Stock scheme.

    Motilal Oswal, which is led by the charismatic Billionaire founder Raamdeo Agrawal is also a big player in the PMS market.

    Its’ PMS strategy, appropriately named ‘Next Trillion Dollar Opportunities’, has invested 13.84 per cent of the corpus into Kotak Mahindra Bank.

    Its other big bets included Voltas, Page Industries, Ipca Laboratories and ICICI Bank, according to the ET.

    Motilal Oswal PMS Funds have also placed maximum trust in stocks like Alkem Laboratories, TTK Prestige, DCB Bank, Mahanagar Gas, HDFC Bank, Max Financial, ICICI Bank, HDFC Life Insurance and Kotak Mahindra Bank as of March 31.

    Saurabh Mukherjea’s Marcellus Consistent Compounders is very familiar to us.

    He periodically recommends his favourite stocks to us and we have also made a tidy packet by cloning his picks.

    Some recent examples are of Abbott Labs and GMM Pfaudler, both of which have delivered mammoth gains despite the slowdown and lockdown.

    The top holdings in Saurabh’s Consistent Compounders include HDFC Bank, Asian Paints, Page Industries, Relaxo Footwear and Pidilite Industries.

    The ET has rightly pointed out that Saurabh Mukherjea’s Consistent Compounders is an outperformer because it has lost only 15.90 per cent YTD while its peers have lost massive chunks of their AUM.
    Last edited: Apr 26, 2020
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Mar 28, 2015
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    All are blue chip stocks of good companies so nothing to worry about fundamental risk. Return may be low but capital is safe IMHO :).
  3. Red Devil Manan

    Red Devil Manan Member

    Nov 23, 2018
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  4. Dilliraj

    Dilliraj New Member

    Jun 17, 2020
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    Thank you for your valuable information