On 1 September 2020, the Supreme Court of India announced the verdict on AGR, allowing staggered payments over a 10-year period to telecom operators. This document provides a summary of the verdict for a layman. Aurum Capital views the resolution positively.
Regards,
Investment Advisors Department,
Aurum Capital
SEBI Registration No: INA000011024
Website: https://aurumcapital.in/services
We published the performance note on the 2nd anniversary of Aurum Capital.
Some of you suggested to include the assumed returns from the cash we were holding the portfolio and also include the performance during the first year. We have included both the performances.
The performance indicates our focus on value investing while protecting the capital along with patience and conviction. During this period, we did not panic and tried to help our subscribers wading through this tough time.
We stayed the course and our subscribers are now reaping the benefits of the resilience of the portfolio which has significantly outperformed all the relative benchmark indices across all periods.
A note about our performance measurement practices and recommendations:
Our performance note of 2nd Aug 2020 with the current market view
Aurum Capital yearly performance note and current view: Aug 2020
This is the performance note sent to our paid subscribers on the 2nd anniversary of Aurum Capital.
Happy Investing
Regards,
Investment Advisors Department, Aurum Capital
SEBI Registration No: INA000011024
Website: https://aurumcapital.in/services
The current view on the market sent to our subscribers.
Aurum Capital Current View on Market: 06 Mar 2020
Dear Subscribers,
We were seeing a turnaround in the economy, and now two back to back events seem to be jeopardizing this in the short term viz. Coronavirus and Yes Bank issue.
Novel Coronavirus or COVID-19 or Coronavirus:
Coronavirus started in China and has now spread across the globe. Our initial analysis says that this is a highly contagious virus, but has a lower mortality rate as compared to Ebola, SARS, and H1N1. The deaths have been mainly confined to 60+ age group, where immunity is low. It is also probable that the virus effect will be much lesser in warmer and tropical climates. India has also reported cases of the virus. The first 3 confirmed cases have recovered, and till date, there is no death reported due to the virus in India.
It may be a bit early to assess the damage. Let’s wait and watch. It may cause a significant disruption in the short term and significantly affecting supply chains, travel, hoteling, movie exhibitions, and large gatherings to name a few. We think that this too shall pass. We should shy away from making short term decisions and look at the longer-term picture.
Yes Bank:
There has been a withdrawal limit on Yes Bank depositors for a period of one month. Yes Bank had problems in its balance sheet and it was fairly known. It’s the fourth largest private bank in India with deposits in excess of 2 lakh crore. We feel it’s too important a bank to fail. Our belief is that depositors will be rescued. It really depends on how the government and RBI tackles this issue. It does create short term uncertainty but is a part of a larger cleansing process of the economy. If this is not handled swiftly, it may lead to deterioration of confidence in the banking and financial system. The government and regulator will definitely try to avoid it.
Our long term view on the economy and the growth prospects does not change. We should continue to be invested if our horizon is long term and look at opportunities to add to our investments.
We had seen that in the Dec-end to Jan period, broader markets had done very well. Post that, the Coronavirus issue and now the Yes Bank issue has hit the investors. Our firm belief is that once this tides over, we should be back on our path to better times.
Our Portfolio:
We have chosen our stocks with a lot of thought and research. We remain confident in our portfolio in the long term. We continue to track and research all our investments rigorously.
Subscription:
We had given a limited-time offer of a 20% discount mainly for the benefit of renewals of our client subscriptions. We thank you for the overwhelming response on renewals. The members who have not renewed may avail of this. We will be closing the 2-year plan and 20% discount soon.
We wish you the best on the upcoming festival of Holi.
Happy investing
Regards,
Investment Advisers Department
Aurum Capital
SEBI Registration No: INA000011024
The new year note and current view on the market sent to our subscribers.
Aurum Capital New Year note: Jan 2020
Dear Subscribers,
Market View and Analysis:
We are going through a tough time in the economy, and outside of a handful of stocks, in equity markets too. The index is just not giving the true picture of the markets. This kind of polarization has not been seen in the Indian markets. If we categorize the stocks by market capitalization, in the last 2 years, only the first 20 stocks as a group have given positive returns. Rest all the stocks have given negative returns. As we go down beyond 500 stocks, the return of the rest of the stocks is -53%. This covers almost 90% of the number of listed stocks. Another study shows that “A” group shares command 94% of the market capitalization of the Indian markets and the rest including “B” group and others command a mere 6% of the market capitalization. This is extreme polarization and again has never been witnessed in the past.
The Indian markets and economy had a big slowdown and that does affect the broader markets. The reasons are many. We do have a global slowdown, and the Indian economy is formalizing, so it will also have cyclical upturns and downturns. Whenever there is a slowdown, there is a flight to safety, and we are seeing this. Making “quality names” very expensive. As investors in equity, we have no option but to tide out these times, stay invested in the companies where we have our conviction.
The silver lining is that in the last few days broader markets have started to outperform. We expect this to continue. Valuations are favourable in this space. It’s time to reap the seeds of our patience.
We believe the worst of the slowdown in the economy is over. The reason, we think this can happen is
Our portfolio:
We have been invested majorly in the small and midcap universe. As you would recall, we have been extremely cautious with our investments. We remained conservative to the extent that till today we are invested only 70%. We remained very conservative during 2018 as well and invested only 32% at the end of 2018. We were criticised and questioned too for this extreme cautious approach. But in hindsight, we know that it helped us in controlling the damage.
Our performance measurement criterion remains conservative and does not consider any returns from liquid/debt funds for the un-invested money. However, we include any loss booked in any of our investments.
We have to understand that returns are also cyclical and follow market cycles. The segment we are in has had a tough 2 years. We believe this is likely to change. Most of the companies we have invested in have value, and it’s a question of time when this value will be realized. We are constantly reviewing each company we are invested in. We just have to ingrain the trait of “PATIENCE”, and we are confident that we will be rewarded in the due course of time.
Subscription:
We have given a limited-period offer of a 20% discount. We thank you for the overwhelming response to renewals. The members, who have not renewed may avail of this.
We are thankful to each one of you for your continued support and confidence in us.
We will end this message with a quote.
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” – Peter Lynch
We wish you all a happy new year.
Happy investing
Regards,
Aurum Capital
SEBI registration No: INA000011024
Website: https://aurumcapital.in
Dear Investor,
Here is the note that we shared with our subscribers.
These are interesting times in the Indian equity markets. If one were to leave a handful of stocks, the broader market has been in deep correction mode for the last 17 months. The few stocks which have done well in these times are mostly large-caps, and at high-end of their historic valuations….
To read more: https://www.slideshare.net/AurumCapital/aurum-capital-view-on-the-market/
Happy Investing
Regards,
Aurum Capital
SEBI registration No: INA000011024
Website: https://aurumcapital.in
This note is sent to our paid subscribers on 2nd Jan 2019.
First of all, wishing you a very happy new year.
We launched our services in the mid of 2018. As you would see below, we did fairly well during this short window of 5 months. It is too early to evaluate our performance when equity investment is to be seen from a long-term perspective.
One of the founding principles of Aurum is “transparency and interest of subscribers first”. The early subscribers will recall our cautionary notes when we launched our services. Keeping in mind the market valuations and expectations of more correction, we decided to defer our first recommendation. We did not recommend any stocks for several weeks and instead asked those early subscribers to have patience.
When we delayed the first recommendation, we also decided that the subscription period for our first batch of subscribers will not start until they receive our first recommendation. None from our subscriber family had asked for this. But as we mentioned that for us the interest of our subscribers is always paramount even if it means a loss of few weeks of subscription fee.
Let’s have a quick glance of Aurum Capital performance during last 5 months.
But before we do that please note
1) We include all exits to arrive at our performance
2) We take the weighted average price of the recommendation. We do not and will never take the lower price of the band while calculating buy. Similarly, we do not and will not take the upper price of the band while calculating gains for the exit. This, we believe, avoids any bias for artificial gains. It rather reflects performance close to the reality.
3) This outperformance is despite our exiting one of the stocks at a loss where we were the one who discovered a serious corporate governance issue in that company.
4) Out of five recommendations in Current Recommendation section, two are still in buy range.
5) Please always follow our detailed research and subsequent updates on the company provided under Current Recommendation section.
6) If you have any questions then you can raise them in Investor Forum section for paid subscribers. These are always responded by the founder and not outsourced to any executive.
3rd Aug our launch of recommendation
Our current list of stocks is in the small-cap category. As you would notice that our conservative and cautious approach paid a significant dividend. We could outperform the market during this turbulent period.
We are almost ready with the new Current Recommendation page and there will be search feature in the Investor Forum. This should be launched in the next few days and we will inform you. We will continue to make more changes at the back end to enhance the subscribers’ experience and security of the system.
Happy investing 🙂
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