Romil Jain, Fund Administrator, Electrum portfolio managers
Despite the valuations “reducing attractive levels”, continuous correction, Romil Jain, fund administrator, electrum portfolio managers, says that the tariff war raises the threat of a global deceleration, therefore, in the middle of capitalization. “Edited Experies:
Is your laureate predominantly betting on small and medium stocks? Given the strong correction in that space by turning the last six to eight months, how is it working?
Yes, we mainly bet on the small and mid -layers, since we believe that the segment sacrifices a lot of scope for previous and long -term coverage returns. These companies are common and underestimated, which gives us the opportunity to bet on them. Our strategy returns for one year were around 17 percent (Nifty Smallcap 250 11 percent), while the last six months were -16 percent (Nifty Smallcap 250 was -18 percent). Capital markets in the last three months have been very chopped, predominantly due to the risk of tariff imposition by the United States. There has been uncertainty regarding rates, which leads to successful volatility in capital markets worldwide.
How is the risk balancing? Do you see any redemption pressure?
We reduce the risk in the portfolio following a consistent frame. Our custom portfolio companies have characteristics such as growth, foundations and management quality, which help us reduce risk. In addition, we have limits in the maximum weights in individual shares and sectors and book profits in a timely manner when the valuation parameters are without being influenced by the impulse of the market. We also avoid the sectors that we do not understand and remain away from short -term trends and narrative sectors.
Subsequent correction, do you see value in that space, especially given turbulence both at the macro and micro level?
The valuations have reached attractive levels. We can have good opportunities in the next few days in the small and a half capitalization space, where substantial yields can be generated from a medium to lung perspective. However, the War Rate raises the threat of a global deceleration, and therefore there may probably be pressure on the small space of the middle cover until the dust sits and clarity arises.
With Sebi approved for SF (specialized investment fund), what impact do you see on PMS market share?
Recently we have recovered the approval of Sebi for Cat-III AIF. AIF will greatly follow a strategy similar to the laureate. AIF will have opportunities to invest in QIP, previous opi and non -listed opportunities. Some of the PMS customers can change the AIF, but AIF will also go to a completely new set of investors.
Their other strategies, scale and novogram have given negative returns. What are the main reasons for weak performance?
Scale and Novogram strategies began very recently. As we know, in recent months, markets have an extremely uncertain and volatile leg, and therefore, both schemes have a negative performance. These schemes will increase in the coming months and we expect reasonably good performance over long -term medium.
What is the size of the funds administered?
The total funds administered in all strategies is 700 million rupees.
Posted on April 17, 2025
