Midcap, smallcap PMSes outperform in January with these stocks; do you own any?

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Just 30% of portfolio managers delivered a positive return to investors in January, when the BSE Sensex cracked over 3% during the month. On the other hand, the BSE Midcap (up 0.78%) and Smallcap index (down 0.61%) managed to outperform the benchmark equity index.

As a result, select smallcap and midcap PMS strategies managed to deliver robust alpha with Valentis Advisors’ Rising Star Opportunity gaining the most 9.08%.

Smallcap players including Neuland Laboratories, Ganesha Ecosphere, JB Chemicals and Pharmaceuticals, Yuken India and VA Tech Wabag were among the top five holdings of Rising Star Opportunity as of January 31. Shares of Neuland and Ganesha advanced 18% and 14%, respectively, last month, while others declined up to 9%.

It was followed by Invesco’s Caterpillar (up 7.51%) and Negen Capital’s Small Cap Emerging strategy (up 4.66%).

Brokerage Edelweiss Securities is bullish on broader markets. “Small and midcaps (SMID) may continue to see more opportunity as the domestic economy recovers fully from Covid shock. Higher government expenditure due to a more relaxed glide path will allow Indian economy to heal faster. SMID cap stocks are more aligned to the domestic economy and the recovery thereof,” the brokerage said.

Tata Elxsi, Balkrishna Industries, Teamlease Services, United Breweries, Sundaram Fasteners, Tata Motors and Bharat Electronics were among the top holdings of Invesco’s Caterpillar as of January 31.

Phillip Capital’s Emerging India Portfolio, Sageone Small & Microcap, Right Horizons’ Minerva India Underserved and Alphabots India Prime and NAFA Asset Managers’ Emerging Bluchip also gained between 3%-4.50% last month, as per data collated by PMSbazaar.

Procter & Gamble Health, Tata Elxsi, Astral Poly Technik, MAS Financial Services, Bajaj Electricals and Cera Sanitaryware were among the major holdings of Phillip Capital’s Emerging India Portfolio. On the other hand, Right Horizons’ Minerva India Underserved held stocks like JK Paper, Fiem Industries, Steel Strips Power, PVR and Dr Lal Pathlabs.

Roha Asset Managers’ Emerging Champions, Buoyant Capital’s Opportunities, Credent Asset Management’s Growth Portfolio, Bonanza’s Value and Master Portfolio Services’ Vallum India Discovery also gained between 2%-3% last month.

Coming to laggards, Basant Maheshwari Wealth Advisers’ Equity Fund declined the most 8.09%. Varanium Capital Advisors’s Large Cap Focused Fund, Composite Investments’ Lighthouse, Asit C Mehta Investment Intermediates’ ACE 50 and Marcellus’ Consistent Compounders witnessed a fall of between 5%-9%.