Beating the benchmarks continuously

We had another good day for our portfolio today. After having very strong gains from our portfolio stocks which has been giving us the edge to out perform the benchmarks on a continuous basis, today again we managed to hold strength.

SENSEX was down 0.36%, MidCap was flat & Small caps managed a positive close of 0.36%. Our portfolio managed a 0.30% positive close today. As we are holding just above 20% of our capital in cash, it has been a good number for the day.

Edelweiss Logo

Stars for the day are Edelweiss with close to 5% gain and Zuari with a near 7% gain. Zuari has 1% capital exposure and is a fairly recent entrant while Edelweiss has been there in our portfolio since last year. Hence on the value terms Edelweiss has topped for us today. We do have a couple of under performers in our portfolio like Vijaya Bank which had lost 5% today & has given a total loss of 30% so far, having been one of our very poor holdings, while we are holding this stock as its balance sheet numbers were good and that is the reason this stock qualified its entry into our ranking tables. Himadri followed with a 3% loss for the day, while this stock has had a good run up, so, giving back small gains is normal.

Print

In spite of tensions across the globe due to the nuclear face off by North Korea, where the global equities took a hit, our portfolio has been standing strong. Works around the thought that, there is good flow of money into the market and all that money is chasing quality stocks.

Sectors that have been doing good in the markets now are Home construction, Cement, housing finance & NBFC’s. As we have good amount of exposure in all these sectors and not have any of the weak sectors in our portfolio, our performance is great.

Being invested in the leaders


At Bravisa Temple Tree, we emphasis more on being invested in the leaders of the sectors and industry groups. The reason behind it is that, stock prices of top performers have the potential to gain much faster and at a higher rate, they also have a lesser chance of falter overnight. Like a motor vehicle travelling at above 60 km speed cannot come to halt all of a sudden.

In many situations the leaders have a better gain on their prices than the whole Industry group. This strategy also helps us to be invested in the top performing industries of the economy at any given period. After the China crisis and the correction in the markets, Sugar, Pharma, NBFC and Infrastructure along with Cements turned out to be leading Industries.

Some of our investments in the leaders and their profits are:

BrokerageStockPref.July16top-gainer

 

EDELWEISS gains 49%, top performance among brokerage and financial services business sector among its peers.

TAJ GVK Resorts gains 63%. Top performance among the hotels sector peer group.

Both these Businesses when compared against their Industry groups have given the highest price growth on their stocks.

Such regular investments are helping us achieve outstanding performance against the benchmarks like SENSEX.