March 2016

In stock markets, good news and good prices never come together. In January we saw global meltdown in commodities and equities. Majority of markets worldwide were down more than 10% in a matter of days. There was panic across and news flows were extremely negative. Bad news created good prices in stocks.

Markets tend to bottom in panic. On 20th January, 2016 global commodities and equities made a strong bottom. The latter part of March quarter saw gradual recovery as buying in markets resumed. Sensex was up by 10% in March as FII buying resumed and we saw inflows of more than Rs. 20,000 crores in one month.

December quarter results were extremely encouraging for our portfolio companies. Most of them outperformed their peers as well as the industry. In spite of good results, global meltdown created pressure on market price of these companies. We outperformed the market both in terms of sales growth and profit growth. Stabilization in commodities will further improve outlook for our holdings. We are extremely excited about financial year 2016-17 as lot of positives can emerge due to low base, higher capacity utilization, lower interest rates, lower commodity prices and improvement in demand.

In the past we have been able to create relevant strategies for our investors. We now have a range of strategies which cover majority of good businesses in India.

For the past several months we have been developing strategies in the Fund of Funds space. We have been able to develop asset allocation based strategies which will dynamically modify portfolio allocation between equities and debt. It will also choose the right funds as underlying holdings. Our strategy will offer the unique opportunity to capture returns of the market with least volatility.

We are happy to announce the launch of STABLE ASSET and STABLE+ ASSET.

Regards,

Vinod Jain