A glimpse into Prateek Agrawal’s revamp of Motilal Oswal AMC
Motilal Oswal Mutual Fund boasts of some top-performing funds. Its mid-cap fund has consistently delivered impressive returns over the past 10 years. But the fund house itself has been floundering for the last many years, with its growth style of investing taking a brutal beating.
This period also marked the departures of some key people. Fund managers took advantage of the situation and began deploying their own styles. Now, the asset management company (AMC) is setting its house in order.
The fund house hired Prateek Agrawal as executive director to resolve the crisis. Prior to his hiring in October 2022, the AMC witnessed the departures of key fund manager Taher Badshah in 2017 and its chief executive officer (CEO) Aashish Sommaiya in 2020, resulting in a power vacuum at the fund house. Agrawal, former chief investment officer at ASK Investment Managers, has since been working to fix processes.
The results have begun to show; Agrawal was recently promoted to the role of CEO. Motilal Oswal AMC will continue to adhere to a growth and quality style of investing even if there are periods during which it underperforms, according to the fund house. The schemes will have concentrated portfolios of 20-30 stocks, even in the mid- and small-cap zone, albeit with some leeway in the small-cap space.
It will not create funds with a value style or some other orientation merely to hedge itself during a style rotation. The schemes will complement the rest of the portfolio of a typical investor, the AMC said, adding. It will not try to occupy the entirety or bulk of an investor’s portfolio.
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