Hello Everyone!
In May, the action was all in the global markets. Seriously, India was a dull, boring place, stock-market-wise, to be in, this month (we are all just about getting used to this new type of Indian stock market: either boring. Or down. Or both.)
Globally, Our Strategy in May produced numbers that were quite satisfactory. Actually, better than "satisfactory" as you will see in a moment.
Here they are:
Our Global Performance in May
The GFF-GTS was up 11.7%
The GMAAP was up 9.5%
Vs MSCI World that was up 4%
Heck, we even beat the NASDAQ 100: that was up just 6%, the S&P500 was up just 4%.
All in USD terms, of course.
What does this show?
A few things, that we discuss later in this note.
But most importantly, it shows that:
A. Smart asset allocation and global diversification can easily beat a narrow, single country -single sector ETF/ Feeder Fund (eg, NASDAQ)
B. And, managing money this way also reduces risk considerably, because you aren't just riding on the coat-tails of a tech rally
As we all know, tech has sunk many a small boat & large ship, last 20 years.
And buying a single market ETF or Feeder Fund is usually a recipe for disaster.
Simply because by the time they become hotly marketed, they are already turning cold.
They simply cannot give you the dream team of improved returns + reduced risk.
That's not what they are built for.
As a result of these numbers, now, for the Year, we are:
2020 Year to Date Performance
GFF-GTS (Dollar terms): +2.3%
GFF-GTS (INR terms): +8.5%
GMAAP (Dollar terms): +1%
GMAAP (INR terms): +7%
Vs
MSCI World: -10.6%
S&P500: -6%
India May Performance
India was an okay-ish month.
Here are our India May numbers:
The IS50 was down 3.8%
The IMAAP was down 0.8%
While the NSE 500 was down 2.5%
Year to Date,
The IS50 is now flat
The IMAAP is up 9.5%
Vs a 20% down market
In May, we just about kept pace with the Indian market, largely because of the end-of-month rally in beaten down sectors like banks, autos, capital goods, and media.
We were light on these sectors (sensibly so, we are sure you agree), so understandably, so we lagged the market slightly.
But that's okay. We aren't in the game to play every move in the market.
Only the ones that our Man+Machine Model believes in - which means sometimes not participating in a pure short-term trading rally in assets our model does not like.
And of course, in India, we have some excellent performers in the shape of Alkyl Amines, JB Chemicals, Navin Fluorine, Astra Zeneca, Deepak Nitrite, and some other good ones.
We had the much-fancied FMCG names too (Asian Paints, HUL, Relaxo, etcetera), but we trimmed them intra-month, as we found better opportunities elsewhere. We added a couple of IT and metal names, for tactical reasons.
But let's talk Global
That's where the fun was.
We had a "Brave Bet" that we alluded to last month, in April Performance Report.
Here's what we had written in our April performance report.
Quote
And on April 29th, we put on a "brave" trade Globally.
But we never ever bet everything on anything. So it's a small but significant 2.5% allocation to a new Asset class on the Global side.
Unquote
Wanna know what that was?
Oil.
Yeah, we went long Oil (via the USO) in April, when it was in the teens.
That closed at $26 in May end.
Pretty decent returns. (Though, of course, the USO lagged WTI quite massively, which doubled in the very same period.)
That's how we do things at First Global.
We are tactical. We are nimble.
We are neither bullish or bearish.
We are always hare-ish.
New country positions
We also added Four new countries in May. Again, controlled, tactical plays.
They have been good performers in May. And we see them doing well in June.
So what led to our May outperformance? And what does it show?
First up, what our numbers show is that there is plenty of life outside the NASDAQ.
The whole dumbed-down world of 'Global' Investing is focused on "Buy NASDAQ ETFs and retire" kind of nonsense.
But just when this story is reaching the far lands of India via ETFs and Feeder Funds, the action is moving away, to other kinds of places to make money.
Away from the NASDAQ.
As it happens so very often, when even the shoe-shine boy starts talking about it.
And true to our promise, our Man+Machine sniffed out a change in global macro.
It found opportunities outside of the NASDAQ.
And even within the US, we found opportunities outside of the main indexes.
That's what led to these May numbers.
Stick around. This is going to be fun.
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 India changes lockdown rules.
By the way, you can also WhatsApp us on +91 8850169753
Chat soon!
At least, you can leave the investing to us.
Chat soon!
From Your Friends at First Global
Trusted Financial Advisors to some of the world's largest Funds, Institutions & Family Offices, for 30 years
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Bipinchandra Dugam @bipinchandra90
@devinamehra @firtglobalsec
invested in both GFF-GTS and Super I50. Thank you very much for such wonderful investing experience with completely new approach. In my 15years of investing first product I felt which close to what customer want.
Shishir Kapadia @shishirkapadia1
@firstglobalsec @devinamehra
by far you are the best, I have not come across transparency, acumen, global expertise, exposure, protection of capital, delivering return from any fund/ fund managers. Invested very small size in 3 products will keep on increasing it over the period
Piyush Bhargava @PiyushB88762654
@devinamehra @firstglobalsec
Thanks you team FG specially Devina, my investment doubled in less than 3 years in SDPB As a investors & PMS distributor of your product looking to have a long-term relationship with the company.
@KarmathNaveen the person with whom I always interact
Sumeet Goel @GoelSumeet
Very happy & relaxed to be invested with first global pms
Shishir Kapadia@shishirkapadia1
Congratulations on super performance, above all transparency and systematic process are unmatchable.
One must opt this, if person consider him/her self as an investor. Very happy to be part of this since invested. FG has managed worst year (ie 2022) so efficiently and skillfully.
SY @SachinY95185924
With so much of volatility in the market, risk management is very important part & considering that FG is doing awesome work!!! Kudos to you Chief
Amit Shukla @amitTalksHere
Truly outstanding. As a retail subscriber to #fghum #smallcase, I can vouch for the Nifty beating returns (8% vs 3%) in last 1 year. Keep up the awesome work @firstglobalsec
We can load above testimonials on site as a scroller, and just below that we can add a section for compliments . Below tweets are comments and praises are related to our content, performance and some our direct compliments to you.
ADIT PATEL @ADITPAT11226924
Good team...
Special mention @KarmathNaveen .. he is soo helpful anytime of the day or night..
Hindustani @highmettle
Bought Peace with FG-Hum.Moving all funds from DIY investing to well managed and diversified PF at low cost.
It has doubled almost, excellent pick.Every small investor must invest in her FG-HUM Smallcase.
Suresh Nair @Suresh_Nair_23
I have 8 small cases and your has been the most rewarding ones .. thank you Devina.
Sayed Masood @SayedM375
There is absolutely no doubt that she is one of the best investors of India in modern times but more importantly, she shares the most sincere and sane advice with retail investors.
SY @SachinY95185924
Wow Superb Returns🔥 Congratulations Chief for being Number 1 among all PMS!!!
You are one of the sharpest mind in Global Stock Market
AnupamM @moitraanupam
Congratulations Devina, results talk in itself!
Abhishek @simplyabhi21
Congratulations ma’am @devinamehra ! The consistency you have in maintaining the top rank position is outstanding! 👏
Mihir Shah @Mihir41Shah
We are learning More about markets (& Life ) thanks to U than we learnt in our Professional courses.A BIg Thank You, Wish all get Teachers Like You!!
Sumit Sharma @MediaSumit
"The ability to be comfortable with being outside consensus is a superpower in investing...and in life." Devina ji hits the nail on its head!
Majid Ahamed @MajidAhamed1
Congratulations @devinamehra mam! All the best for long term returns as well.
Vinay Kumar @VinayKu05949123
This is the wonderful session I have ever attended till date. One of the most fruitful hour of my life. Devina madam, ur clarity on financial mkts is simply superb.The way u portray the facts supported by "data" about stock mkts is really astonishing.I will listen again.Thanks.
VIJAY @drippingashes
I loved to read your journey, insight and philosophy. It's a pleasure to read and know of your takes on market and life.
MNC🏹 @Focus_SME
Check & follow @devinamehra's timeline for lots of post debunking such rosy stories. Also, she gives amazing 🤩 sector directions/hints.
KLN Murthy @KLNMurthy2016
Good actionable insights, great article!
Suresh Nair @gkumarsuresh
Devina Madam is simply terrific... good knowledge, straight and simple thinking.
Very difficult to emulate such traits. I listen her past interviews from youtube.
Respect...!!!!
DD @AliensDelight
One of the brightest minds in the world of finance :)
Radhakrishnan Chonat @RCxNair
📣 Calling all investors! Just had an incredible interview with @devinamehra, Chairperson and MD of First Global. We discussed the importance of global diversification, effective asset allocation, and the risks of sitting on the sidelines. Trust me, you don't want to miss this!
siddarthmohta @siddarthmohta
Excellent performance. Flexibility is the key as you have mentioned it earlier also. Cannot have finite rules for infinite mkt opportunities.
Boom (বুম)@Booombaastic
To be honest, the insights which Devina madam brings in is very enriching..have learnt a lot from them...
Himanssh Kukreja @Himansh02428907
One of the most accurate analysts :)
I always look forward to you interviews mam
Abhijeet Deshpande @AbhijeetD2018
Madam, It is always a treat to read your insight, not only on business but on other topics also!!
Dada.AI @dada_on_twit
Thanks for this wisdom ma'am. Always love hearing your thoughts on everything equity. :-)
adil @zinndadil
Excellent points!
Can clearly feel this thread is a product of marination of many books and years of experience. 👍
Kamal thakur @Kamalgt10
Superb !!
Your knowledge, analysis & articulation is simply great 👍
Tanay @Tanay36232730
Follower on Twitter and Subsciber on YouTube of First Global, really helping me in my investment desicion. Thanks
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