Indian stocks recorded their strongest recent run in 2012, gaining 19% that year in sterling terms while emerging markets more widely rose by 10%.
That year, data from Citywire Discovery reveal that two managers topped the charts on a risk-adjusted basis: Citywire AA-rated Prashant Khemka (pictured) at Goldman Sachs and HSBC’s Sanjiv Duggal.
Khemka took first place for the year with an impressive risk-adjusted score of 1.5, far ahead of the peer group average of 0.15. Khemka’s growth credentials are also emphatic: his portfolio has a 54.3% weighting to small and mid-caps, which comprise just 18.4% of its MSCI India index.
Somewhat inevitably, 2012 was followed by 2013, a much less lucky year for such managers as the market dropped by 7% in sterling terms. Duggal slipped to the very bottom of the pile, although Khemka did remain above average.
Rather, last year’s star turns in the bear phase came from Citywire AAA-rated David Gait and Pictet’s Prashant Kothari. Reflecting the more difficult environment, though, neither achieved a risk-adjusted score above 1: Gait came close with 0.99 and Kothari posted 0.72, while the average for the peer group was negative at -0.2 signifying their failure to outperform the benchmark.
Gait and Kothari also kept in positive territory with markedly different approaches. Gait has significant underweights in financials and technology, while Kothari is overweight them through his concentrated portfolio of just 26 companies (Gait owns 41). Gait’s principal active allocations are instead to consumer staples and industrials.
Interestingly, although neither achieved truly exceptional results in 2012’s rally, they at least remained in the middle of the pack. So while those convinced that India will sustain its boom may wish to back Khemka’s small-cap portfolio, those less certain would be better advised to stick with Gait, confident in downside protection and respectable upside participation.
The analysis comes from Citywire Discovery, a new desktop system that allows fund buyers and fund groups to access track records of over 9,000 managers tracked by Citywire. It provides unique insights into peer group analysis, performance comparisons and competitor analysis. For more details contact firstname.lastname@example.org
This analysis is based solely on the GBP share classes in the managers’ funds.