‘Doing nothing worked really well for my equity portfolios’

In April 2020, when covid hit India and the nation went into lockdown, Mint spoke to trade leaders within the monetary companies area to grasp the influence of the pandemic on their private funding portfolios.

With the passage of a yr, we’re going again to our respondents to see how issues have panned out—and whether or not there are any classes for traders. In the second a part of the sequence, we discuss to Aashish Sommaiyaa, chief government officer, White Oak Capital Management.

Sommaiyaa was beforehand the CEO of Motilal Oswal Asset Management Company, which he left in July 2020.

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In an interplay in April 2020, Sommaiyaa had mentioned that he was 97% invested in equities. This proportion has now come all the way down to 50%, with the stability going into actual property.

“I’ve been incrementally investing in industrial actual property. The early indicators are encouraging; it’s a great play on yield in addition to potential development,” he said. “No one should have the kind of portfolio I have as I said last year. I acted on my own advice and bought yielding assets—commercial real estate.”

His fairness portfolio delivered a 60-70% return previously yr, roughly according to the market; his realty investments yielded a ten% return.

Despite his lengthy expertise with monetary markets (together with seven years at Motilal Oswal MF), Sommaiyaa steered away from market timing and reserving earnings.

Nor was he fazed by the market correction, which lowered his portfolio worth by 25% final April.

“In March and April 2020, the most important studying was why not guess on macros and why not take money calls? If you had excellent information of covid and also you took money on the way in which down, you’ll have been left excessive and dry along with your name within the subsequent month or two. Lots of people I’ve met say that ‘if’ I had eliminated in February and ‘if’ I had re-entered in April, I’d have executed properly. I’d simply say that when there are two ‘ifs’, the likelihood of profitable execution goes all the way down to 25%. Best to not entertain such ‘ifs’ in hindsight,” he mentioned.

He additionally plans to put money into worldwide shares to seize development alternatives not obtainable in India. Gold, nonetheless, is a no-no. “It’s an asset the place I can determine to take a position solely on the idea of some relative macro traits, which I don’t suppose I’m good at,” he mentioned.

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