Our portfolio during Covid 19 crisis.

COVID-19 is the biggest human tragedy in many decades and has impacted almost every aspect of our life. So how come stock market remain immune to it. Year 2020 is unique for stock markets in 2 ways.

  1. Sharpest ever market crash in 2 months’ time.
  2. One of the biggest market recoveries after that.

Unfortunately, many of the retail investors got trapped and they did the worst which was selling their portfolio during peak of market crash thus making their losses permanent. Many of you enquired about our portfolio’s performance during covid19 crisis. Our momentum with safety portfolio aims to maximize returns at relatively lesser risk. The objective is to outperform the market during both bull and bear run.  We will consider the performance during march 2020 when COVID-19 driven market crash was at it’s peak. On 4th April 2020 our portfolio was rebalanced and the performance picked up very sharply. So below are the performance details.

Our Portfolio Stock Price on 28th Feb close Price on 3rd April close Returns
HINDUNILVR 2174 2154 -0.9%
SANOFI 7293 6655 -8.7%
Nestle 15578 15104 -3.0%
AtUL 5358 3897 -27.3%
SFL 1627 1240 -23.8%
ABBOTINDIA 15718 15810 0.6%
AKZOINDIA 2350 2066 -12.1%
MindTree 944 701 -25.7%
BERGEPAINT 566 449 -20.7%
MCDOWELL 686 456.8 -33.4%
IPCA 1361 1385 1.8%
Portfolio return     -13.9%
Nifty return 11201 8083 -27.8%

 

As already mentioned, we try to identify stock with high return potential within a limited risk limit and most of the identified stocks fulfilled the criteria. Here are some of the highlights.

  1. Of the 11 stocks identified by our algorithm 10 performed better than nifty.
  2. Overall portfolio loss (-13.9%) was half of what nifty (-27.8%) incurred during the same time.
  3. Two stocks still managed to deliver positive returns while one remained flat.

The portfolio was also made public on 3rd March 2020 to help retail investors on our twitter handle @prudentcap  (Check tweet on 3rd march 2020) . Additionally, below is the whatsapp screen shot of the recommendation. For more information about momentum with safety portfolio  please visit  prudentcap.smallcase.com as it is now offered on smallcase platform.

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