Porinju Veliyath’s success as a stock picker and status of “wealth wizard” means that investors are chasing him with bagfuls of money. Porinju has racked up a mammoth AUM of Rs. 220 crore for “Equity Intelligence”, his Portfolio Management Scheme (PMS).
Porinju made this disclosure in his latest interview to CNBC TV18. Porinju also revealed that Equity Intelligence has notched up returns of 71.69 percent in the fiscal year 2015, which compares very favourably to the 26.66 percent gain for the Nifty. He also disclosed that over the past 12 years, Equity Intelligence has earned impressive gains of 32.9 percent CAGR.
It is interesting to note that in an interview to the microcapclub, Prof. Sanjay Bakshi also revealed important facts about the ValueQuest India Moat Fund that he manages. The Prof did not indicate the AUM but said that the “weighted average market cap” of the stocks in the portfolio is about $600 million (Rs. 4000 crore). He also revealed that there are 11 stocks in the portfolio. These must be small and mid-cap companies.
My guess is that unlike the Moat Fund’s concentrated portfolio of 11 stocks, Porinju’s Equity Intelligence PMS must have a highly diversified portfolio with several dozens of stocks in it. Porinju once revealed that when you are buying “low-quality” stocks, you have to spread your risks across a large number of stocks so that the failure of a couple of them does not cripple the AUM.
Prof. Sanjay Bakshi also has an impressive track record of generating returns. While the ValueQuest India Moat Fund notched up a return of 108% from April 2014 to May 2015 (Nifty return is 15%), the Prof has delivered 24% (in USD) from 2001 to 2012.
The Prof also revealed that the ValueQuest India Moat Fund earns a management fee of 1% and a performance fee of 20% over a hurdle of 8%. Porinju has not revealed the fee that his PMS charges. However, according to an old prospectus, there are three fee structures that a client can opt for. At the lowest rung, the fee is 1% on the average NAV plus a 20% share of the returns above 10% p.a.
The investing style of the two stock pickers is as different as chalk is from cheese. While Porinju goes hunting for “cheap” and low P/E stocks that are in a poor shape and with “low quality management”, the Prof does not touch a stock if it doesn’t have top-quality management, high ROE, a “moat” and other “high quality” parameters. The Prof is happy to pay a high P/E for these stocks.
At the end of the day, notwithstanding the difference in investing styles, both stalwarts are raking in big bucks of money.
And that is all that matters!
The interview is very nice.
have 2 question to Arjun or anyone if you guys know.
1. he mentioned his fund hold 5% of selan (i think old tweet), that is 25 cr so that means selan is 10% of his portfolio. like that do we know or get his allocation from some here.
2. second, during interview one graph came , shreyas from 20 to 700 in 1 year. but i think someone in ur forum mentioned he sold long before that. so dont understand why that things were shown.
Both Dolly Khanna and PPFAS Long Term Value fund hold more than 1% each in Selan.
Dolly Khanna’s latest pick guys – Lloyd Electric – check their latest Annual report. Now holds 0.4% stake. Typical value buy available very cheap @ mcap/sales of 0.37, p/e of just 8 and good growth potential
Looks like Porinju’s style is like the Walter Schloss style….
Porinju’s firm Equity Intelligence recently crossed 5% holding in Zicom :
http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/2244DC89_279C_4B37_BBA6_4A1CBCE93200_151039.pdf
I had invested through his PMS-Equity Intelligence and the returns where pathetic after holding for 2.5 years.I exited couple of years ago.The stock picks where all risky bets and some of them turned out to be multi baggers but a lot more end up eroding capital.In the end I came out with less capital than I had invested initially.More than picks,the constant churning of the portfolio kept me wondering what the strategy was.
investor71, what is the best investing pms/ or agency according to your experience?
I’m interested in knowing more about your investment experience with PMS. I am considering investing with PMS. I must admit, his claims seem lofty. Hopefully, I will have the discipline to do a thorough background check before investing with him.
1. When did you start, when did you end?
2. Do you think Porinju’s published numbers are made up? Why do you think so?
3. Did you speak with other investors in PMS before investing there?
4. What do you think about his and his company’s integrity? Do they maintain high standards?
THEY WHY NO BODY BLAMES PORINJU ABOUT HIS DECLARATION OF C A G R THAT HE CLAIMS….. HOW MUCH IS PORINJU RELIABLE ????????
THAT A BIG BIG QUESTION… CAN ANY ONE REPLY GENUINELY ?