Aurum Capital – Blog

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 model portfolio remains the same as displayed on the screen for all starting from the beginning.
• We include all exits to arrive at our performance. We do not remove/hide any stocks exited by us even if we have booked any losses.
• 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 reality. We never try to manage our performance. It is as is in black and white and mostly tilted to benefit the subscribers.

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

Some of you asked to include the performance for 1st year and some suggested to include assumed liquid fund returns against cash we were holding. We have done both and here is the performance for 2nd year, 1st year and YTD.

Aurum Capital yearly performance note and current view: Aug 2020

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