A closer look at the handiwork of these recipients reveals some common threads. Sticking to the core investment philosophy at all times comes front and center for generating sustainable long-term wealth. Many have also insisted on limiting drawdowns rather than chasing immediate glory by riding the pace. At the same time, some have accepted changing circumstances and shown a willingness to adapt to new realities with clever realignment. Read on to learn how the gatekeepers of mass-market equity funds have managed to increase the wealth pie for investors through the ups and downs of the market.
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1. Shreyash Devalkar
Age: 42 Years
Education: BE (Chemical Engineering), Masters in Management Studies
Experience: 16 Years
5 Year Asset Weighted Return: 19.0%
Average 5-year AUM: Rs 8,558 crore
Risk Adjusted Return: 0.9904
Fund Managed: Axis Bluechip Fund
AUM (Rs. in crore): 29,161
Annual Return (%)
- 3-Years: 13.92
- 5-Years: 15.92
Profile
Axis Bluechip hasn’t exactly upset the performance tables during the recent rally, but Shreyash Dewalkar’s quality-focused approach that emphasizes downside safety powers its engines. Recognizing that the pandemic could not be made as expected, he quickly adjusted to the new realities. Leaning towards quality, Dewalkar has made some subtle changes – towards B2B centric firms amid lockdown restrictions on mobility.
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my reading of the market
B2C segments such as retail, consumption, retail credit growth have not performed relatively well so far due to the mobility restrictions related to COVID. This segment offers better risk reward, but we need to be cautious about the Covid wave. Opportunities are emerging from technology-led disruptions and we need to be mindful of tech-led disruptions to the incumbent’s business model.
How is my fund located
We are overweight on the IT, export-led pharma and cement sectors, and are looking at the pandemic scenario for opportunities in the B2C segment.
Top sector bets and top stock selection
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2. Shridutt Bhandawaldar
Age: 41 Years
Education: BE (Mechanical), MMS (Finance)
Experience: 15 Years
5 Year Asset Weighted Return: 16.8%
Average 5-year AUM: Rs 470 crore
Risk Adjusted Return: 0.81
Fund Managed: Canara Robeco Bluechip Equity
AUM (Rs. in crore): 3,679
Annual Return (%)
- 3-Years: 15.99
- 5-Years: 15.75
Profile
In a broader market, Sridutt Bhandardar does not compromise on the basic investment philosophy. He believes that the focus on protecting downside and limiting downside is central to delivering alpha sustainably. For this, the storekeeper always does some sanity checks. The bulk of the Canara Robeco Bluechip equity portfolio comprises proven businesses with earnings visibility and stability backed by promoter integrity.
Even when the tide lifted most of the boat, he remained firm on distinguishing between permanent elevations and cyclical fluctuations. This has given the portfolio flexibility amidst a challenging environment. He also stressed on identifying top down demand drivers and where they will work the most. However, the maneuver proved difficult as the execution time frame was reduced to a narrow window. The stockholders are unhappy that the market has not given enough time to fully gain gains even if the thesis is proven correct. Nevertheless, the fund benefited from early moves in export-oriented sectors.
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my reading of the market
The market is trading above average valuations from a near term perspective and therefore we expect consolidation with a rotation in the direction of opening sectors from outwardly focused sectors. So, we are more constructive on financial, industrial, consumer discretionary, gas value chain, housing and cement from a 1-2 year perspective.
How is my fund located
Canara Robeco Bluechip Equity is overweight on financial, industrial, consumer discretionary sectors and underweight on FMCG and energy sectors.
Top sector bets and top stock selection
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3. Gaurav Misra
Age: 51 Years
Education: MBA, IIM Lucknow / BA ECO (Hons)
Experience: 25 Years
5 Year Asset Weighted Return: 16.0%
Average 5-year AUM: Rs 11,388 crore
Risk Adjusted Return: 0.70
Fund Managed: Mirae Asset Large Cap
AUM (Rs. in crore): 27,435
Annual Return (%)
- 3-Years: 13.81
- 5-Years: 15.00
Profile
Despite unusually high volatility in recent times, Gaurav Mishra has steered the ship for Mirae Asset Large Cap, with an emphasis on limiting drawdowns while focusing on underlying business strengths. He firmly believes that high quality companies always come back stronger after a crisis. If the idea is confident of merit, one must keep up with whatever happens in the market. This is why Mishra has maintained confidence in trading near-term losses in earnings, but retaining the long-term earnings trajectory. He makes it a priority for companies to address a large opportunity size and show strength of character at all times. Leaning towards structural, compounding stories, he sets aside a portion of the portfolio for value bets or special circumstances.
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my reading of the market
I believe the earnings cycle for the corporate sector is going to be bullish over the next few years. This should be supported by an improvement in the health of the balance sheet, as well as a very sharp decline, given that near-term valuations are above average levels. I believe the asset class will continue to deliver superior relative returns for investors with a longer time horizon.
How is my fund located
Mirae Asset Large Cap Fund is positioned through a combination of strong, well-run businesses that leverage domestic infrastructure, innovative business models and export based opportunity. Additionally the fund also has and holds space for businesses with deep value and special status.
Top sector bets and top stock selection
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4. Swati Kulkarni
Age: 55 Years
Education: B.Com. Certificate Examination of MFM (NMIMS), CFA, CAIIB-I, IIB for Employees of UTI
Experience: 28 Years
5 Year Asset Weighted Return: 13.9%
Average 5-year AUM: Rs 5,520 crore
Risk Adjusted Return: 0.61
Fund Managed: UTI Mastershare Unit
AUM (Rs. Crore): 8,580
Annual Return (%)
- 3-Years: 13.27
- 5-Years: 13.40
Profile
The durability of the company’s moat has been tested during COVID, observes Swati Kulkarni. But companies with strong competitive franchise have been able to weather the storm effectively and capture market share. Kulkarni selectively increased investments in general insurance, metals and diagnostics companies during this period. Recognizing that the high degree of polarization in recent years has been painful for active fund managers, it has also provided opportunities, she insists. Kulkarni avoided index heavyweights, avoided concentrated exposure and instead focused on companies that improved on metrics such as return on capital employed. At the same time, the fund’s returns have increased due to the high active weight in the selected index. Kulkarni maintains a safety-first stance, guided by the primacy of cash flows over other metrics.
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my reading of the market
Broader market valuations have moved above historical bands, but there are pockets where an improvement in demand could lead to better-than-expected earnings growth and structural drivers leading the growth runway. As the accommodative trend at the global level begins to ease and if the recovery in global growth remains weak, the market will be very volatile.
How is my fund located
The fund continues to invest in companies with a sustainable advantage over the competition and avoids strategic calls. The portfolio position is high in the telecom, IT, consumer discretionary and pharmaceuticals sectors.
Top sector bets and top stock selection
5. Harish Krishnan
Age: 41 Years
Education: CFA, PGDBM (IIM Kozhikode), B Tech (Electronics & Communication)
Experience: 16 Years
5 Year Asset Weighted Return: 13.9%
Average 5-year AUM: Rs 1,500 crore
Risk Adjusted Return: 0.59
Fund Managed: Kotak Bluechip
AUM (Rs. in crore): 2,945
Annual Return (%)
- 3-Years: 13.81
- 5-Years: 13.20
Profile
Harish Krishnan played the right card when he placed confidence in companies focused on gaining mind share and market share, hoping to gain from a boom in post-Covid demand. Instead of buying cheap, he stuck to the best-of-breed franchise, which would keep the fund in good stead for the long term. To that extent, they have fired for stable compounders based on earnings visibility and low exposure to cyclicals. Krishnan identified Revenge Consumption and inventory upstocking as strong plays as well as companies spanning global value chains. He also took advantage of the opportunities created by the financialization of savings but avoided pain at the lower end in the financial sector.
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my reading of the market
After 15 months of bullish momentum, we expect the market to consolidate and digest these gains. All segments and stocks have performed well so far, but in the next 18-24 months, divergence will emerge in companies that have managed the pandemic better (by improving their market share and customer relevance or by improving their capital structure). by improving) and companies that have benefited from the overall boom of the stock market.
How is my fund located
We continue to do business with a strong growth track record and prudent capital allocation, with companies exposed to cyclical tailwinds from domestic infrastructure and manufacturing initiatives as well as global spending on technology and digital.
Top sector bets and top stock selection
(Source: Morningstar India)