Monthly
Communiqué
Dear Investors and my dear Advisor friends;
Asset Management
Portfolios
MOSt
Make the MOSt of our expertise
December 2013
I hope you may like the changes we are bringing in the way we present our monthly communiqué to you.
Over the years I have realized that all of us fund managers with whom you invest, instead of
communicating to you what we are doing, we write on what is happening in the market, in the economy
and what are our expectations on the same. Ultimately what happens there is not in our control. We should
write to you about how we are managing your money and hence the new Investment Insights section.
Without getting into economics or market dynamics; I am tempted to highlight an important development
as I write to you. Never ignore the power of sentiment, when it comes to moves in equity markets. In the last
30-45 days and more so in the first 7 days of December the possibility of new political formations is resulting
in a palpable change in sentiment in the markets. If you are in the camp that is disillusioned with equity
investing “because equity has done nothing in the last 5 years” you might want to re-check your position because the possibilities of the
next 5 years may not have anything to do with disappointments of the last 5 years.
As regards as future possibilities and the next bull market, let us remember that in the year 2000, there was a rally in Technology-Media-
Telecom, in 2007 there was a rally in Infrastructure-Retailing-Real Estate. Currently, there is huge disenchantment with equity, instead of
being despondent about equities, let us spend our time in figuring out where the next rally may be. Few pointers:
1.
Rally doesn't come in a segment of the market that is completely unknown. Technology rally came in 2000 but computer and
telecom revolution started in 1985, Infosys got listed in 1994 and many others followed and we knew about Y2K and India's
technology prospects well before 2000
Infrastructure rally culminated in 2008 but seeds got sowed in 2003 with electricity bill, golden quadrilateral and NHAI etc.
So the next rally has possibly already started. It is already upon us, we need to position ourselves for it. Where is it?
2.
3.
Having said so, we believe in focusing on what’s in our control. What kind of companies we invest in, how do we go about formulating a
process of identifying these companies, what are the performance attributes of these companies, and what is our expectation of the
performance of these companies - I think these are the areas we all should focus on so that we can not only deliver performance but also
allow you to participate in the process of formulating that performance. For a few months now, instead of market commentary, I have
taken the liberty to provide to you a commentary on our portfolio holdings with the hope that you can read why these companies are part
of your investment portfolio.
In case of any views or feedback you would like to share with me, please write to me at aashishps@motilaloswal.com
Regards,
Aashish P Somaiyaa
Chief Executive Officer
Celebrating 10 years of
Focus and Discipline
Celebrating
5
Portfolio Management Services
y
ears of
ear
Opportunity
Focus on
N
E
XT
Trillion Dollar
Opportunity Strategy
MOSt