A star performer

FUND PICK/ Tata Equity Opportunities

Value
(Cr)

Net
Assets
(%)

ACC13.354.78 Gujarat Ambuja Cements13.254.74 Indian Oil13.084.68 Arvind Mills11.454.10 Larsen & Toubro10.543.77 Lupin9.703.47 Bhel7.992.86 D-Link (India)7.592.72 Raymond7.352.63 Bharti Tele-Ventures6.912.47 Hero Honda Motors6.812.44 Tata Tea5.772.06 Pantaloon Retail5.752.06 Tata Power5.722.05 Birla Corp5.682.03 Jai Prakash Associates5.521.98 HPCL5.261.88 Television Eighteen India5.041.80 Oil & Natural Gas Corp5.001.79 Ultratech Cemco4.701.68
 But when the bear market started, the fund could not replicate its bull market outperformance. Though the fund manager was correct in reducing its mid-cap allocation, its large-cap PSU bank and energy holdings resulted in the fund losing value, as these stocks fell more rapidly compared to the mid-caps.  The fund has been selective about its large-caps and doesn't hold them for long periods. For instance, companies such as Reliance, SBI and Infosys have been frequently in and out of its portfolio since its launch.  On the mid-cap front, the fund has adopted a two-pronged approach: a buy-and-hold strategy for fundamentally sound stocks such as Divi's Labs and Crompton Greaves, and a get-in-book-profit-get-out strategy for the more volatile stocks.  Outlook: The fund has been a star performer over the entire cycle but given its short tenure, it is to be seen how it is going to cope in a bear market.

Value Research