Portfolio Performance - 2011

2011 was an interesting and eventful year (probably like any other). For the Indian equity markets, it was full of fears that was imported from first US and then Europe. This year started with the Sensex at 20509 and Nifty at 6134. It closed the year at 15455 and 4624 respectively. This amounted to a decline of 24.6% on the Sensex. Along with the general market, my portfolio also fell. For the whole year, the portfolio was down 15.19%. That is a substantial percentage. The fall was especially vicious during the last couple of months. When I look back, the portfolio was generating positive returns till the end of October and then fell off sharply. This is because the only stocks I hold are mid and small caps and they have been beaten down in the current environment of extreme uncertainty with respect to the currency depreciation and Eurozone problems.


Although, I do not expect a great turn around in 2012, I would continue to deploy most of my savings to stocks. This is primarily because I am more convinced about the future of businesses to generate above inflation returns than any other form of investment I am aware of. With the market fall, stocks (specially the small and mid-cap variety) are available at good valuations for someone with a reasonably long time horizon. I am not very concerned about short term currency fluctuations and other issues. I don't expect basic business demand & supply to alter based on macro economic concerns, and good and resilient businesses should be able to weather the storm.

Serial #	Name of Company	% of Portfolio (Dec'11)	% of Portfolio (Jan'11)	Since Jan'11	Comments
1	Astral Poly	4.94%	0.00%	New	Accumulate
2	Balaji Amines	5.19%	8.34%	Down	Hold
3	Balkrishna Industries	4.49%	3.59%	Down	Accumulate
4	Cravatex	4.22%	0.00%	New	Hold
5	Elecon Engg	2.43%	0.00%	New	Accumulate
6	GEI Industrial	3.77%	0.00%	New	Accumulate
	Hira Ferro	0	5.12%	Sold
	Indag Rubber	0	0.95%	Sold
7	JK Lakshmi Cement	2.38%	3.32%	Down	Accumulate very slowly
8	Lloyd Electric	1.67%	5.03%	Down	Hold
9	Manjushree Tech	3.70%	0.00%	New	Hold
10	Mayur Uniquoters	10.44%	5.29%	Up	Accumulate aggressively on every dip
11	Opto Circuits	6.05%	8.32%	Down	Hold
12	PI Industries	6.51%	0.00%	New	Accumulate
	Pidilite	0	0.00%	Sold
13	Poly Medicure	1.34%	0.00%	New	Hold
	RSWM	0	6.68%	Sold
14	Shriram TransFi	7.37%	10.90%	Down	Accumulate aggresively on every dip
15	Sintex India	4.02%	9.97%	Down	Accumulate aggresively on every dip
16	Supreme Ind	16.86%	20.65%	Down	Hold
	Supreme Infra	0	3.64%	Sold
17	Titan Industries	4.36%	0.00%	New	Accumulate very slowly
18	Yes Bank	6.86%	5.88%	Up	Accumulate
19	Cash	3.21%	0.09%	Up
20	Nifty Put Option	0.19%	0.00%	New