‘India has robust financials, is on every investor’s radar’: Kenneth Andrade

livemint.com:

Mint, Andrade, shares his perspective on the firm’s upcoming new fund offer (NFO)—the Old Bridge Focused Equity Fund—and provides valuable insights into his investment approach and strategy. With 27 years of experience in Indian capital markets, including a decade as chief information officer (CIO) at IDFC Asset Management, he now serves as CIO at Old Bridge Asset Management Company. Andrade, who recently established his own asset management company, says the firm concentrates on identifying businesses early into a cycle.

Our stock selection process revolves around identifying large, debt-free companies that survive market downturns and use capital efficiently. The underlying companies in the portfolio would demonstrate leadership skills and have financial discipline. Old Bridge Capital was founded in 2015 and currently we are managing assets of about ₹8,000 crore.

Over the last seven years, Old Bridge PMS has given an 18% annual return, compared with 15.6% by the BSE 500 TRI (total return index) since inception. In the last three years, Old Bridge PMS has outperformed by a wide margin. Our PMS has delivered 29.2% returns, against 20.4% given by BSE 500 TRI.

Old Bridge Capital Management has a consistent focus on identifying opportunities in sectors undergoing cyclical troughs, with a specific emphasis on B2B businesses, manufacturing, and construction and infrastructure. Our approach involves anticipating sectors that are poised to lead the next market cycle. We seek businesses at the early stages of a cycle, prioritising those consolidating, with low debt, higher efficiency, and favourable financial leverage and valuations.