Value no longer exists in this market; it is all about growth: CIO, founder Old Bridge MF Kenneth Andrade
Subscribe to enjoy similar stories. When asked where he sees growth and value, Kenneth Andrade, CIO of Old Bridge Mutual Fund and founder director of Old Bridge Capital Management, bluntly says, “Nowhere." “When you talk about value, it no longer exists. It's all about growth," he said.
Andrade believes in buying for capital efficiency, but only at the right price. “We don’t subscribe to the approach of outbidding others for high-quality stocks at any cost." He believes this year and a part of 2026 are likely to be years of market consolidation. So, he does not expect great returns this year or even the following year.
After five straight years of strong positive returns, it is natural for the market to take a breather. “Even if the market dips slightly this year, I don’t see it as a major concern," he said. Edited excerpts: The choice of investment depends heavily on your time horizon.
If I were to invest today, I would allocate around 30% to equities and distribute the rest between bonds and real estate. By real estate, I mean primarily REITs or InvITs, where yields are relatively attractive. We are witnessing a course correction in some asset markets, particularly equities.
Our outlook suggests that equities as an asset class may undergo a consolidation phase through 2025 and some part of 2026. That period could present an opportunity to shift assets back into equities. For the better part of this decade, I continue to favour equities and real estate—especially real estate yields over bonds.
In an inflationary environment, fixed income may not be the best place to be on a structural basis. Beyond equities, real estate offers a physical asset hedge against inflation. So, that is where I would tend to believe that
. Read more on livemint.com
