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Our August '20 Performance: Worth a close look.

Our August '20 Performance:
So how did we do?
Well...umm..err...

We F......n did it.
Again.


Look we understand.

Our tone might look like we are preening.

But look again: why on earth should we not, considering that we have had another very, very solid month?

Our philosophy is a bit different from the usual that you will hear: Be mild. Be modest. Be understated.

We kinda made peace with the fact that we might be many things but not quite the ones above.

You know why?

Because if you are not going to share your happiness with your friends ( we're all friends, right?) in your happiest times, who are you going to share it with?

So let's start the sharing. 


Global Funds' Performance: August '20

The Global Freedom Fund SPC - Global Tactical Strategies SP (GFF-GTS) was up 7.6%.

Our Global Portfolio product, the GMAAP was up 7.3%

Vs MSCI World that was up only 6.0%

Global Funds Performance: Calendar 2020 Year to Date

GFF-GTS (US Dollar terms): +30.4%

GMAAP (US Dollar terms): +31.2%

Vs

MSCI World: +2.7%
S&P500: +7.4%

AND we achieved the higher returns with lower volatility too - something we are are even more proud of!

Annualised volatility was 19-26% for our products in this turbulent year versus 29.2% for the MSCI World and 37.3% for the S&P 500!

India PMS Performance: August '20

The Pure Equity India Super 50 (IS50) was up 8.0%

While the Nifty was up 2.8%
NSE 500 was up 3.7%

The Asset Allocation India Multi Asset Allocation Portfolio (IMAAP)  was up 2.7% (this, quite frankly, is remarkable, given the IMAAP's very low volatility Profile)

And CRISIL Moderate Hybrid Index was up 2.2% (this is our Benchmark for the IMAAP)

India PMS Performance: Calendar 2020 Year to Date

The IS50 is up 28.5%

Vs

NIFTY 50 that is down 6.4%

NIFTY 500 that is down 5.1%

The IMAAP is up 15.3%

Vs

CRISIL Moderate Hybrid Index that's  up 5.0%

Once again we have done even better on a volatility adjusted basis!

The annualized volatility for IS 50 was 20.9% as against 34.6%  for the NSE 500 and nearly 37% for the Nifty. The volatility for the IMAAP was a mere 8.8% against 30% for the CRISIL Moderate Hybrid Index.

Returns÷Stress

You see, it does come down to the basics: what are the returns divided by stress ( volatility=stress).

Anybody can make money  buying a few stocks and then, riding their luck.

That's great cocktail party talk ( or let's say,  Zoom cocktail party talk).

But that's not Investing.

The key lies in crafting a global portfolio that, under even the most trying circumstances, achieves the normally unachievable: deliver pretty acceptable returns with more than acceptable peace-of-mind.

That's really what we keep refining every single day.

Global Performance Analysis

The Weak Dollar Trade continues

In August, we had massive winners like Overstock, Apple, Square, China, Japan, Silver, etc.

But The Key also lay in our April- May identification of the weak Dollar Trade.

That Trade led to a lot of things getting clearer as this year has progressed.

At the time of writing this note, the Euro is nudging 1.20.

We saw this coming and built positions in European indices.

We have a reasonable, 15-16% exposure to Chinese stocks.

Are we worried?


Of course. We are good old-fashioned worry-warts.

But...

We also bought a natural hedge, in the shape of the Hong Kong Stock Exchange.

You guys probably know that we are partial to the stock exchange business. We own quite a few across the world.

But the HKEX is also a natural hedge against any further US-China tensions: Chinese companies are and will continue flocking to this Exchange.

Imagine what that does to this stock's fortunes.

Gold, Silver, Oil: The Trend is on The Mend

All these positions continue unchanged and will continue till the time we detect any end to this Trend.

And do finally remember:

These results were delivered with a very diversified portfolio, with around 40-50+ positions, across the world.

India Performance Analysis


Our India numbers were... well... bloody good! (Sorry, this is a repeat from the July letter).

On a wide, wide basket of stocks. (Kind of a repeat of the July letter).

None of this "small list of high conviction" bs, for us. (Again, this is a straight lift from our July letter)

August delivered us very good winners in the form of Essel Propack, Alkyl Amines, Aarti Drugs, Chemicals, Metal Producers etc
We played the Payments Trade in India via SBI Cards.
And this is because we own several payment companies globally.

Now you begin to see how our combined Global and Indian footprint keeps helping every single one of our investors: they mesh like Yin and Yang. Or whatever meshes this well.

The Trade That Changed

Back in May and June, when the whole world (in India, that is) was talking about sticking to "safety" (in the shape of large banks, FMCG, consumer plays, etcetera), our models sensed that the big, big money was going to be made in the Mid Cap space. 

We are nothing if not Hare-ish.

We cut our positions in Hindustan Lever, Asian Paints, etc.

We built positions in the next line up of really good names in the mid cap space.

And they worked out quite satisfactorily.

We understand that you are itching to know where we think the market is going.

Truth be told: "It will be volatile" 😉.

Sorry. Just feeling a bit kiddish.

Frankly, and seriously, we remain optimistic about the stocks we own.

And that's what matters, doesn't it?

And of course the proof of the pudding is in the eating: our India PMS is far, far ahead of the competition. 

Take a look at the comparative Performance (till July, 2020, which we will update once we have August numbers for everybody else)

And our Human+ Machine delivers these Returns with the lowest possible risk.

We do not run "High conviction" risk.

We do not run "Storification" risk.

We do not run "High concentration" risk.

And yet we deliver.

Or maybe, that's why we deliver.

That is the beauty of our proprietary Human+Machine investment model.
 

For those who aren't invested with us, but want in, just drop us a line on https://bit.ly/2V0RxAx and we will get in touch quicker than a Bumrah yorker

By the way, you can also WhatsApp us on +91 8850169753 

Chat soon!

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