Outlook – Budget Opportunity;Midcaps Shine

————————————————————————————————————————— Date: 21st Feb 2015

JainMatrix Investments : a Mid & Small Cap Review of Model Portfolio

We are in a run up to the great Indian Budget 2015, and this report tries to map some of the business and economic outlook. We also present readers with the review and results of our Mid & Small Cap Model Portfolio, where we outperformed the benchmarks by an annualized 61%. We present the Feb 2015 update on this portfolio, several changes and a refresh of key data.

Our portfolio is only shared with Subscribers. 

Portfolio Objective, Theme and Performance

  • JainMatrix Investments launched its Mid and Small Cap portfolio in Feb 2013.
  • The objective of the MSCMP is to outperform the Mid and Small Cap indices by large margins.
  • It consists of 7 mid & small cap BUY rated firms that are out-performers from identified 3-5 sectors.
  • Firms are introduced into the MSCMP with a minimum holding period of 1 year.
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Investment Strategy Note

JainMatrix Investments presents the Feb 2015 update of its Mid Cap Model Portfolio.

  • It’s been a very good year for the stock markets. Like in a marriage, the honeymoon period is now over for the new central government. It’s time for the delivery on promises. The first budget owned and created by the central govt. kicks in on 28th It will be an important event. The Budget is the Opportunity.
  • We at JainMatrix remain confident that this will be another above average year for investors. The interest rates are starting to trend downwards. Inflation is falling. The commodity prices like oil, fuels, metals, agri-commodities, etc. are trending down. The related industries may suffer a correction, but the wider economy will benefit. It will help consumers, local business and investors with costs reducing and budget surpluses. Also, foreign exchange reserves are up; gold controls are being eased and individual outbound investment limits have been raised.
  • As per the govt., local defense production will become the heart of the Make in India They have increased the foreign investment limit in the domestic defense industry from 26% to 49%. This makes sense as this is the one sector that the govt. has maximum control over, the Defense-Industrial complex. India has been foolishly importing the majority of its defense equipment, actually preferring, for some perverted reason, foreign suppliers rather than Indian. This is now being reversed. The opportunity is massive, estimated to be $250 billion over the next 10 years, or an average Rs 1,50,000 crores per year. The expectation is that Indian private sector players with manufacturing capabilities will individually, or in partnership with renowned global defense players, win defense contracts. We will expand on this theme in future notes.
  • The INR/USD rate is now 62.16, and is now expected to be in the range of 59-63.

Portfolio Theme and Performance

  • The investment theme is now – IT and Auto ancillary exports, and cyclicals like banks, financial services and infra. The investor should continue his wealth building process with Mid-Caps.
  • We have made some changes to this portfolio, and there are now 7 BUY shares and 1 HOLD.
  • Our Mid and Small Cap Portfolio continues to perform well. On average the 7 Buy recommendation shares were up by absolute 155% and annualized 92%. But including the two Holds so far, the portfolio gained by absolute 124% and annualized 73%.
  • The CNX Midcap, S&P BSE Midcap and S&P BSE Smallcap were up by 29.5%, 28.2% & 31% annualized in the period. The JM active Mid/Small Cap portfolio outperformed by 61%.

Investors need to continue to invest in these shares to continue their wealth building process.

Our portfolio is only shared with Subscribers. Sign up with us.

Some previous updates for the JainMatrix Investments Mid and Small Cap Model Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe

Do you find this site useful?

  • Visit the Investment Service page to find how you can get more. And click LINK
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Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

MidCap Portfolio – Celebratory Outperformance

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Date: 25th Dec 2014

JainMatrix Investments Mid & Small Cap Model Portfolio: Monthly Update

In this, our last report of 2014, we wish our Subscribers and Readers a Merry Christmas and a Happy New Year. Its time to be grateful for the wonderful gifts of 2014.

We also present readers with the Celebratory results of our Mid & Small Cap Model Portfolio, where we outperformed the benchmarks by an annualized 54%.

We present the Dec 2014 update on this portfolio, with a refresh of key data.

 

Our portfolio is only shared with Subscribers. 

 

Portfolio Objective, Theme and Performance

  • JainMatrix Investments launched its Mid and Small Cap portfolio in Feb 2013.
  • The objective of the MSCMP is to outperform the Mid and Small Cap indices by large margins.
  • It consists of 7 mid & small cap firms that are out-performers from identified 3-5 sectors.
  • Firms are introduced into the MSCMP with a minimum holding period of 1 year.

 

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  • The current investment theme is – IT services, Auto ancillaries, NBFCs, infrastructure and rural/ semi urban consumption.
  • In a mildly corrective environment of Dec 2014, the portfolio performed well. On average the active portfolio shares were up by annualized 83.9%.
  • The CNX Midcap, BSE Midcap and BSE Smallcap were up by 25.6%, 24.6% and 29.7% on an annualized basis over 23 months. These have fallen mildly in the last month.
  • The JainMatrix Investments active Mid & Small Cap Model Portfolio outperformed the indices by 54.2%.

  • The investor should continue his investing process with the MSCMP in a SIP mode.

Some previous updates for the JainMatrix Investments Mid and Small Cap Model Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe

Do you find this site useful?

  • Visit the Investment Service page to find how you can get more. And click LINK
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

MidCap Portfolio – Come, Invest in India

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Date: 19th Aug 2014

JainMatrix Investments launched its Mid and Small Cap portfolio in Feb 2013. This is the fifth update report on this portfolio, along with a brief investment note.

(Our portfolio is only shared with Subscribers, but here’s the Investment Outlook from this report). 

Mid/Small Cap Model Portfolio – Aug 2014 – Investment Outlook

  • It’s been only 4 days since Independence day, but in these 4 days, a lot has changed in terms of our business and economic outlook. On I-day, India’s PM addressed the country and spoke about his concerns, his desires as PM, and his new initiatives through governmental action and funding.
  • I will not go into any specifics. All I can say is that the PM feels strongly about the right things. This is a PM of stature. He is the right man in the right place. In 5 or 10 years as ‘Prime Sewak’ he will be able to give a new direction to governance, business and economy in India. He has also set up a powerful team to execute on his ideas.
  • Indian business has in the past made their achievements in a tough environment in terms of govt. policies. So if these improve, things can only get better and easier from here for business.
  • The PM’s brilliant call rings in my ears – Come, Make in India. On these lines, our title theme is – Come, Invest in India
  • Post budget, the markets were in a down mood after those heady days, and had some doubts over the next few weeks, but we are now past that. More than before, it’s now time to be positive in the market. Stay invested in well-chosen stocks.
  • We notice a pattern in the mid & small cap shares. After highs around the budget time, many of these have corrected sharply thereafter. And after a fall, started recovering. Investors need to understand that by their nature, these shares are volatile and move rapidly in both directions in the short term. In general, investors need not get overly concerned about sharp movements. Typically a positive event (budget) that gave new highs to many firms, may be followed by a technical correction, which again may be followed by a recovery (if fundamentals are strong).
  • The INR/USD is at 60.7, and should be in a 60 +/- 2 band for a few months barring extreme events.
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Portfolio Theme and Performance

  • The investment theme continues to be – IT and Auto ancillary exports, infrastructure and rural/ semi urban consumption. The investor should continue his wealth building process with Mid and Small Caps.
  • In a very positive environment, the portfolio performed very well. On average the 7 Buy recommendation shares were up by absolute 104% and annualized 89%. But including the two Holds the portfolio gained by absolute 77% and annualized 67%.
  • The CNX Midcap, BSE Midcap and BSE Smallcap are benchmark Indices, and were up by 33.7%, 33.8% & 44.6% absolute in the period. The JM active Mid/Small Cap portfolio outperformed by 59%.
  • Investors need to continue to invest in these shares in a SIP mode.

The rest of this report is shared with only current subscribers. 

Some previous updates for the JainMatrix Investments Mid and Small Cap Model Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe

Do you find this site useful?

  • Visit the SUBSCRIBE page to find how you can get more. Click LINK
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com

JainMatrix MidCap Portfolio outperforms by 50%

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Date: 12th June 2014

JainMatrix Investments launched its Mid Cap portfolio in Feb 2013. This is the fourth update report on this portfolio, along with a brief investment note.

(Since our portfolio can only be shared with Subscribers, here is the rest of this report). 

JainMatrix Investments presents the June 2014 update of its Mid Cap Model Portfolio.

  • Post elections, the investment climate looks self-assured, with smart positive moves and an air of confidence. Investors are approving the initial noises from the new government, and awaiting with anticipation the budget due second week of July.
  • Early in 2014, the Indian indices were at all-time highs, but could be split logically into two groups.
    • One set of sectors that appreciated manifold from 2008 levels. This includes IT, FMCG, auto & auto ancillaries, banks, NBFCs and pharmaceuticals.
    • The other set of sectors were at a mere fraction or below the 2008 levels, like realty, capital goods, infra, engineering, power, telecom, metals and Oil & Gas.
  • In the past few months, we are seeing a rebalancing of investment funds from the overvalued first group to the undervalued second. This is because the outlook for the economy is now quite positive. All sectors should do well, but from a valuation point of view, there was an imbalance, and so this was inevitable. Plus the new govt’s first task has to be to resurrect the damaged sectors of the second group, which are also crucial enabling sectors for GDP growth.
  • In a similar fashion, while the large Caps were positive in this period, the undervalued Mid and Small-Caps saw a big appreciation, also called a mean reversion.
  • The INR/USD strengthened to 58.6 because of high FII/NRI funds inflow before coming to today’s 59.3
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  • Theme: The investment theme for now is – exports, infrastructure and rural/semi urban consumption. The investor should continue his wealth building process with Mid and Small-Caps.
  • Performance: In a very positive environment, the portfolio performed extremely well. On average the 7 Buy recommendation shares were up by absolute 95% and annualized 132%. But including the one Hold, the portfolio gained by absolute 82% and annualized 115% (over a period of 16 months).
  • The CNX & BSE MidCap were up by 31% & 32% absolute in the period.
  • The JainMatrix Investments Mid/Small cap portfolio outperformed these benchmarks by 50%.
  • There are now 7 shares in this portfolio that are BUY recommendations and two Hold.
  • Investors need to continue to invest in these shares in a SIP mode.

The rest of this report is shared with only current subscribers. 

Some previous updates for this Portfolio

Not a subscriber? Sign up for a JainMatrix Investments subscription to help navigate your investment journey. Visit  Subscribe

Do you find this site useful?

  • Visit the SUBSCRIBE page to find how you can get more. Click LINK
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

Disclaimer

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent Financial Expert/Advisor. Either JM or its affiliates or its directors or its employees or its representatives or its clients or their relatives may have position(s), make market, act as principal or engage in transactions of securities of companies referred to in this report and they may have used the research material prior to publication. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com