Alpha Portfolio

October 2010
A diversified portfolio of stocks that seeks Alpha through superior stock selection.
The Portfolio Management adopts a comprehensive approach and invests across
sectors and investment themes.

Portfolio Details Portfolio framework & management style

Set-up Fee:
2% (If portfolio value is less Management Style Active
than Rs.25,00,000) • Management style is active with close
Moderate monitoring and review of portfolio positions.

Exit Load: Passive • Approach is largely top down for sector selection
Nil (Full management fee to and weights followed by incisive evaluation of
be levied if redeemed before High Medium Low stocks within sectors.
1 yr) Extent of diversification

Portfolio Management Fee:

Performance and performance attribution
1.50% p.a. on average assets
• The portfolio has marginally underperformed
Profit Sharing: the Nifty in the last quarter and has
20% of profits over 12.0% outperformed the Nifty since inception.
portfolio return and high
• The portfolio outperformance since inception
watermark could be attributed to significant overweight
allocation to healthcare and consumer goods
and less exposure to Oil and Gas and IT
sector.
Risk Analysis
Performance as on 31st September 2010
Risk Level:
Moderate Top 10 Stocks exposures
Reliance Industries 11.2%
• The top performing sector in September was the
Return Potential: State Bank of India 6.5%
financial sector. This was led by State Bank of
Moderate HDFC 6.4% India, HDFC Ltd. and ICICI Bank
ICICI Bank 6.3%
Current Market Cap Break-up: Infosys 6.1% • Divi’s Lab and Asian Paints were the companies
Large Cap: 80% Larsen & Toubro 6.1% that lost ground.
Mid Cap: 12% BHEL 5.6%
Small Cap: 8% Bharti Airtel 4.4% • We continue to maintain our overweight stance
Nestle 4.3% on consumption theme from medium term
Titan 4.2% perspective
Summary
Top 10 Stock Concentration 61.1%
Given the current economic
situation globally, we have Sector concentration & view on sector orientation
maintained a cautious
approach with greater focus • The portfolio vis-a-vis the Nifty, has
on visibility, growth and significant overweight positions in
Healthcare (11.5% against 2.3%) and
superior capital efficiency of Consumer Goods (16.3% against 6.9%)
the businesses in the sectors.
portfolio. This implies a
higher allocation to • The portfolio has underweight positions in
consumption sectors and Metals (0.0% against 7.6%) and
cautious approach towards Information Technology (6.1% against
13.1%) sectors.
commodities.
Swapnil Pawar Himanshu Pandya Si Kannan

Rashi Agarwal Kanika Khorana Jharna Agarwal

Roopal Pareek Neha Arora

Disclaimer

The information and views presented here are prepared by Karvy Private Wealth or other Karvy Group companies. The information contained
herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness
thereof. This material is for personal information and we are not responsible for any loss incurred based upon it.

The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions
based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting
upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person connected with any associated
companies of Karvy accepts any liability arising from the use of this information and views mentioned here.

The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies from
time to time. Every employee of Karvy and its associated companies are required to disclose their individual stock holdings and details of
trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in
purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients
of Karvy. All employees are further restricted to place orders only through Karvy Stock Broking Ltd

The information given in this document on tax are for guidance only, and should not be construed as tax advice. Investors are advised to consult
their respective tax advisers to understand the specific tax incidence applicable to them. We also expect significant changes in the tax laws
once the new Direct Tax Code is in force – this could change the applicability and incidence of tax on equity investments