We are sitting on almost 60-70% cash in newer portfolios; we will stagger investment: Ravi Dharamshi
Ravi Dharamshi, CIO, ValueQuest Investment Advisors, says “in the older portfolios, we are sitting on probably 10-15% kind of cash. In the newer portfolios, we are sitting on almost 60-70% kind of cash. So again, this just coincides with the market's overall kind of exuberance level. So we will probably end up deploying when the market corrects itself or if the outlook changes.”
Traditional investors always shied away from investing in the IPO market, but you have not done that. You bought into recent IPOs and this is public information. In Zaggle, the bulk deal data did indicate that you bought into it. You have bought into Kaynes, another stock. How come now you are saying do not buy, invest in IPOs?
I have learned from Rakesh Jhunjhunwala that there is one rule in the market and that is there are no exceptions in this market. You have to understand in an early IPO cycle, there are some companies that come to the market which provide you that opportunity. The IPO market had dried up for almost two years. This was the first lot of the companies that are coming to the market. Yes, we understand the acronym, it is probably overpriced. No doubt about it.
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The IPO's seller at the other end is well, an insider who knows, understands the company and business very well. The buyer is somebody who is just a secondary market investor so that mismatch is there. However, factoring in that, if there is a good quality company, if we have mentally prepared ourselves for that, post
