Basant Maheshwari’s USP is his never-say-die spirit. We saw how in the midst of the great stock market crash of 2008, Basant clawed his way back from imminent bankruptcy to reinvent his investing formula.
Basant freely shared his investment formula and stock tips to an eager audience and also penned a book called “The Thoughtful Investor”. This propelled him to great heights and made him very popular amongst investors.
Basant cleverly cashed in on his popularity by starting a stock advisory service called “Basant Top 10”. This was a roaring success.
However, a couple of bad strategic decisions by Basant coupled with the failure of a few stock picks led to such a firestorm of protest that Basant abruptly shut down his service.
All of that is in the past. For the future, Basant is looking forward to his brand new portfolio management service.
Basant’s strategy is a brilliant one because a PMS is known to be a money-spinner for the portfolio manager as well as its clients.
A typical PMS requires a minimum investment of Rs. 25 lakh. The fees are a flat 2% plus a share of 20% of the excess over the hurdle rate which is normally pegged at 12%.
This means that if Basant attracts 100 clients, each putting in Rs. 25 lakh, and generates a CAGR of 25%, he stands to pocket 1.15 crore as his fee.
If the AUM surges to Rs. 500 crore and generates a return of 33%, Basant’s take-home pay swells to a mind-boggling Rs. 31 crore per year.
In fact, Basant had once claimed that Basant Top 10 had generated an eye-popping CAGR of 65%. The claim was not backed with evidence and created an unseemly controversy on twitter.
There are a number of role models that Basant can look to for inspiration.
Porinju Veliyath’s PMS, Equity Intelligence, has an AUM of Rs. 350 crore and is clocking in a return of 33%. Other savvy investors who are running portfolio services include Prof Sanjay Bakshi of ValueQuest India Moat Fund, Nilesh Shah of Envision Capital, Manish Bhandari of Vallum Capital, Ravi Dharamshi Of ValueQuest etc.
The important point to note is that the PMS concept in India is still at infancy. In the USA, portfolio management services (called hedge funds) manage billions of dollars. Bill Ackman’s Pershing Square, for instance, manages a mind-boggling AUM of $20 Billion (Rs. 1,35,000 crore). Even Nehal Chopra (a former Mumbaite), who is still in her early thirties, manages nearly Rs. 6,500 crore in her Tiger Ratan Fund. The portfolio managers like Carl Icahn, Bill Ackman, David Tepper etc are billionaires in their own right.
It will be interesting to see who amongst the PMS Managers in India will be the first to reach the same exalted status that their foreign counterparts enjoy!
He was recommending page,gruh finance and hawkins till the last day of his basant corner but it seems that he had made up his mind to sell out of all these top 5 stocks which it now seems he sold out the very next days of closing his basant corner – if this is not cheating investor trust what is ? I am not sure if what he did was right .
Basant was never transparent when the Hawkins episode was unfolding, he did not clearly say if he sold and got out or held his position , a very unethical way of treating investors who trusted him totally, he has to answer his own conscience at some point
Knowing shri maheshwari ji I have no doubt he will emerge as the most successful investor not only in india but in the world. His books of knowledge will be read around the world more than buffet and others. We are fortunate to be living in his era.
Basantji has not sold his housing finance companies as indicated in recent interview.
Page was sold recently if we follow his recent interviews.So he has not cheated anyone.He openly said he bought granules.In this bearish market it has almost doubled.If u want to make wealth follow him.
The fun here is basanth is following porinju’s path and strange that porinju is “basanth in making” …
Irony of markets !!
what heights of porinju is –
he wanted PM of india to investigate on airlines as they step him out to make space for some poilitcal leader – he is that big??
I use nifty as he want –
when his stock do well he say why nifty look at my stocks and
when he fund do less he comapre his fund to nifyt … joker
last funny thing is –
he recently said trading and tracking nity is easy and any own can do it …
but he going to make his own index of 100-12 stocks
limits yaar 😉
Don’t think Basantji has cheated investors. You can’t expect Sachin Tendulkar to score 100 in every match
Unless Hawkins goes back soon to 6000 levels Basant can not escape heartburns of small retail
The point which is forgotten is that every one made money in the last 2 to 2.5 years. Somebody made more somebody made less. What is required is the sustainability of these decent returns. Why one does not reveal his PMS results/returns for the past say 10 years or 8 years or since 2007 at least so that we can understand how it has performed with at least two booms and two worst bursts.
can u give me annual returns for last 10 years, given by Basant maheshwari PMS
& contact details for him