Quant MF is positive on hotel, infra, and energy sectors, Sandeep Tandon says
Subscribe to enjoy similar stories. MUMBAI : In the February factsheet, Quant AMC said that they are shifting their focus from defensive large-cap stocks to a more aggressive style -investing in select small and mid-cap stocks. Their performance also suffered in the past six months.
According to Value Research, their top 3 funds by size, Quant Small Cap, Quant ELSS, and QuantActive Fund, have been the worst performers in the last year. This was mainly due to the large exposure they built in Reliance Industries and Jio Financials, which did not move much. In the past six months, RIL is down 15%, and Jio Financials is down by 28%.
“In the coming weeks and months, we will begin pruning our defensive exposure toward more cyclical and growth-oriented segments," Quant Mutual Fund said in a recent communication to investors. For context, the benchmark Nifty 50 is down 10% from its lifetime high of 26,216 points in September. When the cycle turns, Quant MF believes select high-beta small-cap stocks will rebound faster than the rest of the market.
“Allocations will gradually tilt in favour of very select high-beta names, particularly within the small-cap category, which are historically quicker to recover during market rebounds," Quant wrote in its February factsheet. “Such a strategy aligns with the fund’s overarching philosophy of leveraging periods of market pessimism to build positions in high-potential areas." Mint caught up with Sandeep Tandon, founder and chief thought officer, Quant MF, for an interview. Edited excerpts: You had invested in big conglomerate names (RIL & Adani) but it hasn’t worked out well. Would you tell us the reason? In July 2024, we were early to talk about mild risk-off.
Read more on livemint.com
