Merisis Multicap PMS

Date: 12th June 2024

 

At Merisis Multi-cap PMS, while adopting a concentrated portfolio structure, with 16 holdings and cash (~10%) we have continued to deliver decent outperformance vis our stated benchmark, viz., CNX 500 (Data based on actual client portfolio holdings) in light of extremely high volatility that has engulfed our markets for a greater part of this year (3M Rolling Returns +9.1% for Merisis Multicap vs 5.0% for the benchmark as of 31st May 2024)  

In terms of market cap exposure, we currently have 50% exposure to Mid and Smallcaps while 25% to Ultra Large and Large Cap stocks with balance split between Precious Metals and Cash. Metals (15%), Pharmaceuticals (12%), Capital Goods (11%) and Financials (10%) are the top 4 sectors with ~50% allocation. 

 

Our top holdings in the Multicap Portfolio currently are Glaxo Pharma, SilverBees, Bharti Airtel and Tata Steel (34% of the portfolio)

Our key differentiating factors include:

1. Non Consensus Approach: We spend a lot of time trying to identify and invest in future winning investment themes today.
2. Subdued Past Returns: A long period of pain and resulting investor pessimism around the same ultimately generates investable opportunities for us
3. Value driven approach: the average TTM P/E Multiple for our Portfolio is ~29x vs 24.5x for CNX 500.
4. Focus on asymmetric risk reward: We strive to find opportunities with a non linear return potential where the downside risk is measurable 

• Glaxo Pharma - 35%
• SilverBees (Silver) - 33%
• Honeywell Automation - 26%
• Bharti Airtel - 23%