We completed 9 months of live performance and survived a market crash!
The unforeseen, once in a lifetime crash caused due to the economic impact of the loss due to the coronavirus blew up all major markets in March 2020. We survived and lived to tell the tale!
All major equity markets fell as much as 30% in March 2020 and the markets were filled with extreme fear and panicked selling.
Our Multi Factor Tactical portfolios during the same period did exceedingly well for a long-only strategy.
While the Nifty suffered a 30% drawdown in March, our portfolio only went down 12%
How did this happen?Our asset allocation modules which are based on apredictive regime shift modelmade us deallocate away from equities to bonds and liquid instruments early in February and March.
The performance since inceptionfor our strategies is outperforming the index by a big margin now.
Going forwardswe are being cautious, we were deallocated from equities by upto 50% in April and invested into sectors like Pharma, FMCG and Financials. The styles or themes we were invested in were — low volatility, value and efficiency.
Allocations in April
Now that the markets are recovering, in May we expect to have a higher equity allocation and larger allocation to risk.
Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy/sell or the solicitation of an offer to buy/sell any security or financial products. Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary.
Wryght Research & Capital Pvt (Brand name: Wright Research) is a SEBI Registered Portfolio Manager Reg No: INP000007979 (Validity: Apr 03, 2023 – Perpetual) and a SEBI Registered Research Analyst No: INH000017295 (Validity: Jul 03, 2024 – Perpetual), with its registered office at 103, Shagun Vatika Prag Narayan Road, Lucknow, UP, 226001 India and CIN: U67100UP2019PTC123244. Past performance may or may not be sustained in future. Performance provided there in is not verified by SEBI. Investment in securities is subject to market and other risks, and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services will be achieved. Registration granted by SEBI, enlistment as RA with Exchange and certification from National Institute of Securities Markets (NISM) in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Please read the Disclosure document carefully before investing. Securities quoted are for illustration only and are not recommendatory. Charts shown are for illustration only. For more information and disclosures, visit our disclosures page here.
