Investment University

Our June '20 Performance: Global beats Local hands down

It was a very interesting June.

Of course so was May. And April. And March. 

2020 has been nothing if not interesting. 

We really wish for more such months. 

At least insofar as our Global Performance is concerned.

 

Global Funds Performance: June '20

The Global Freedom Fund SPC - Global Tactical Strategies SP (GFF-GTS) was up 9.8%

The GMAAP was up 9.9%

Vs MSCI World that was up only 3%

The S&P500 was up 2%. 

The NASDAQ, hold your breath, was up 6%. 

 

Global Funds Performance: Calendar 2020 Year to Date 

GFF-GTS (Dollar terms): +12.3%

GFF-GTS (INR terms): +18.9%

GMAAP (Dollar terms): +10.9%

GMAAP (INR terms): +17.4%

Vs

MSCI World: -7.9%

S&P500: -4.8%

 

India PMS Performance: June '20 

The Equity IS50 was up 3.5%

The Asset Allocation IMAAP was up 1.5%

While the Nifty was up 7.5%

And NSE 500 was up 8.4%

 

India PMS Performance: Calendar 2020 Year to Date 

The IS50 is up 8.9%

The IMAAP is up 6.8%

Vs 

NIFTY 50 that is down 15.3% 

NIFTY 500 that is down 18%

 

Global Performance Analysis

As is very, very clear our Global performance is completely off the charts.

What explains this?

The answer is very interesting.

From the month of May, our systems started detecting a broadening of the Global rally that had started in the last week of March. 

This was in sharp contrast to a very narrow market rally globally and of course in America, from the end of 2016.

We all know just a handful of stocks drove up American markets and it was the same in India as well.

But this started to change from the first week of May '20.

And our massive dashboard or as we call it: Network Operating Center (NOC), started detecting signs of a broadening market up-move.

And our portfolio got positioned accordingly.

Therefore, our positions in in the broader consumer and technology spaces in the US, helped us tremendously. 

We had massive winners like DocuSign, Etsy, Datadog, Square etc (all up 25-35% this month) from the digital economy. 

 Several others in the consumer and a few in the pharma/med space also did very well.

At the same time, we broadened our Holdings into new emerging markets and Japan.

Having Oil and Gold in our portfolio helped deliver great returns with low volatility.

We continue to like both.

All these tactical shifts help in delivering absolutely standout numbers globally.

Most gratifyingly, these returns were made with a very diverse portfolio, not with a few concentrated bets, reducing risk very considerably.

India Performance Analysis

India of course was a completely different kettle of fish.

We had some very good winners in the form of Reliance Industries, Gujarat Gas, Tube Investments, Infosys, Astrazeneca, IPCA etc. as well as our favourites, Alkyl Amines, Navin Fluorine, Sanofi, etc.

But the reality of the rally in India was that it was not a really of "Quality". 

Globally, the rally was in top quality names with very strong earnings outlooks. Something our models are comfortable with.

But in India, it was largely driven by beaten down financials and other sectors (autos, realty) which have been badly hit by the ongoing COVID 19 crisis.

And even within these sectors, the big movers were the relatively poorer quality names (IndusInd Bank and RBL, for instance vs. a HDFC Bank).

If you take a look at the best performers in the NIFTY 50, you will find banks (the worst ones), Tata Motors, Vedanta, BPCL, Hero, SBI, Eicher, Hindalco, etc.

Of all these, we had just Reliance. 

It is not that we did not anticipate a rally in beaten down, high beta, riskier plays. 

It was pretty clear and evident from the first week of May when our systems detected a broadening of the market rally globally.

Our systems also detected a rally in small cap stocks across the world.

The question in such situations is: should you do a large scale change in your portfolio to chase temporary Momentum in highly risky stocks in the market?

Logic and common sense will tell you: by all means do a bit.

But do not go the whole hog.

Because when the tide turns, these high beta names will come back and bite you in some of the most hurtful places in your body. 

So we played the rally in India modestly. 

And we are absolutely fine with lagging a market rally in which low quality, debt-laden, high beta names, rally.

These situations happen routinely and normally in markets and frankly we have seen dozens of them in our three decades of investing.

We just ride them out.

What is most gratifying to us is that the NAV of our India PMS is at an all-time high, even as the market is a long way away from its own high. 

YTD we are UP 9% even as the market is DOWN 15% plus.

We have introduced some very interesting new names in our India portfolios in this quarterly rebalancing.

As you all know, at First Global, we are not rigid or inflexible in our investing approach.

Our human plus machine model delivers results across market situations and time periods.

And it 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.

More on that later.

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

From Your Friends at First Global

Trusted Financial Advisors to some of the world's largest Funds, Institutions & Family Offices, for 30 years

https://firstglobalsec.com

  • Socialise with us at :
  • Image result for facebook logo

 

Tell Us What You Think:
Accolades & Happiness Under Management

First Global has been widely commended by Global Media. And by thousands of big & small investors worldwide

Subscribe to our fun & thought provoking articles

Contact us on (contact@firstglobalsec.com), to get cracking on building serious wealth!

Follow our buzzing social media handles

- Attention Investors -
1.Prevent Unauthorized Transactions in your trading account. 1.1. Update your Mobile Number/Email Id with your stockbroker. 1.2. Receive information of your transactions directly from the Exchanges on your Mobile/Email ID at the end of the day. - Issued in the interest of Investors
2.Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020. 2.1. Update your email id and mobile number with your stock broker / depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 2.2. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month. -Issued in the interest of Investors.

Quick Links

Get in touch

Regulated By

FCA in the UK
SEBI in India

•      SEC in the US
•      CIMA in Cayman Islands

First Global Stockbroking Pvt. Ltd. SEBI Regn No.INZ000210739 AMFI Regn ARN-79096

First Global Commodities Pvt. Ltd. SEBI Regn No.INZ000082436

First Global Finance Pvt. Ltd. Merchant Banking: INM000010627 PMS Regn No. INP000006697 Research Analyst Regn No.: INH000004635

First Global Securities Pvt. Ltd. AMFI Regn: ARN -32949

Copyright 2019, All Rights Reserved. Developed By : Hvantage Technologies Inc. Maintain By : Aarav Infotech