In the past few months, we have been surprised to look at some of the big gainers. Here's what we found about top six-monthly gainers as on March 23, 2005.
Taurus Discovery Stock: This fund has excessive dependence on one or two stocks. The fund's fortune has fluctuated with a movement in these stocks. In March 2000, Himachal Futuristic alone accounted for 32.49 per cent. But this fund does not learn from its past mistakes. Since September 2003, the fund has invested around 20 per cent of its corpus in Jaiprakash Associates (earlier Jaiprakash Industries). More recently, the fund is reaping in the benefits of its investments in NDTV, when it was an unlisted stock. NDTV accounts for about 18 per cent of its portfolio.
Taurus Starshare: The fund has been managed on the lines of Taurus Discovery Stock. While diversifying, the fund seems to have taken into account only the number of stocks, while forgetting the importance of their relative weightage in the portfolio. In March 2000, 30.85 per cent was invested in Himachal Futuristic alone. Like Taurus Discovery Stock, the fund has invested disproportionate amount of its assets in Jaiprakash Associates in recent times. In February 2005, the stock accounted for 30 per cent of the portfolio.
Canexpo: When it comes to investing in Infosys, this fund had beaten many of the technology funds during the tech boom of 2000. In January 2000, Infosys accounted for 28.3 per cent of the portfolio alone, while tech sector as a whole had an allocation of 64.39 per cent, which rose to 71.74 per cent by March 2000. In the recent past, though the fund has not been taking excessive exposure to any particular stock, but it has been guilty of a high degree of sectoral concentration. For most of 2004, the fund has invested in excess of 30 per cent in health care sector. Since January 2005, the fund has shown great affinity to metals (32.49 per cent in February).
Magnum Global: After being bitten by the tech bug like many other funds during 2000, the fund has learnt from its past mistakes. Of late, the fund has been doing quite well, with a portfolio diversified across stocks and sectors. Exceptional returns generated during the last few months seem to be a result of good fund management.
Magnum Contra: Apart from yielding good returns, another good thing that this fund has done is to stick to its objective of investing into 'out of favour' stocks. This objective kept the fund away from technology stocks when prices were skyrocketing during 2000. If you happen to share the philosophy that the best time to invest in an asset is the time when it is not performing well, then this is the fund for you.
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