HDFC Fund Portfolio Analysis
Sunday, August 19, 2007
Here is a real quick analysis on how our star fund manager realigned the folios of various funds.
In HDFC Equity fund, their were no major shuffles except that exposure to IT stocks was reduced. Punj Lloyd probably gave him a SELL warning when it crossed Rs 290 levels and hence reduced holdings in it. He also sold Bharti Airtel, probably he thinks in line with Kotak Analyst who say that QoQ growth has peaked and with Spectrum crunch and no 3G services in-sight, bottomlines will be under pressure. Taken Fresh positions in ITC.
In HDFC Top-200 fund, their were quite a few new additions to the folio, Bajaj Auto, NTPC and Asian Paints. One can BUY Asian Paints and Bajaj Auto on market corrections. NTPC is a fantastic PSU but we don't recommend it is a long term play. IT Stocks Position was reduced. Exits made in Ranbaxy, Hindustan Unilever and Colgate Palmolive.
Under HDFC Prudence fund, we saw fresh positions in Page Industries and Grindwell Norton. Substantial quantity of Shanti Gears were purchased. Reduced exposure to IT stocks.
Published by DalalStreet Business @ 7:51 PM
Are Fund Managers Holding More Cash ?
Thursday, August 09, 2007
Our Mutual Fund Analyst researched some top mutual funds and has observed that the cash levels in portfolio have increased compared a quarter ago.Reliance Growth fund and Reliance Equity Fund both managed by Sr. Fund Manager Sunil Singhania [On your Left] is holding is holding 9.81% and 15.11% of portfolio in Cash / Call Money. Reliance Vision fund is having 9.42% in Cash / Money Market instruments. Franklin India Flexicap fund once again managed by Sr. Fund Manager K N Siva Subramainan is also holding 9.42% of folio in Cash / Call Money. All these funds are large funds with portfilio value ranging between Rs 4,000 to Rs 3,200 crore.
Our star fund manager Prashant Jain of HDFC Equity and Top-200 has taken a different bet. Holds very low cash in HDFC Equity fund - 2.9% while in HDFC Top-200 fund it is at 9.1%. The portfolio of HDFC Equity Fund is mostly Large Cap liquid stocks and hence we guess he feels it un-necessary to hold cash.
What is common in all the above funds is, where Managers take significant exposure to Midcap stocks, they prefer to hold around 10% cash in their funds. However, if volatility continues then they are expected to shift to Large Cap otherwise they are under severe pressure of quarterly performance with their peers.
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Published by DalalStreet Business @ 7:20 AM
