Mirae Asset Great Consumer Fund has delivered an impressive top quartile performance over last 12 months with 9%+ alpha over benchmark and 4%over peer group average.
Siddhant is bullish on consumer discretionary, building materials, QSR, retail, select e-commerce platforms, hospitals and liquor companies.
Consumer discretionary is a space witnessing significant growth, consolidation (unorganized to organized), emergence of exciting new players and models, listing of popular brands – all of which make this a great segment for stock pickers.
Despite being underweight consumer staples due to high valuations, the fund still has around 25% of its portfolio in this sub-segment(vs 31% for benchmark). Siddhant prefers to be benchmark aware rather than completely benchmark agnostic in his portfolio construction.
He believes that one needs to look beyond just PE as the metric to evaluate some businesses – typically retail chains, where accounting quirks result in distorted profit numbers while cash flows are far more robust. He relies on DCF and fair value to determine entry and exit in these stocks, rather than PE.