Taking a step back helped beat competition: Fund Manager Shreyash Devalkar

Shreyash Devalkar of Axis Mutual Fund was able to deliver enviable returns by moving away from the herd even as mid- and small-caps struggled

For mid- and small-cap companies, the rally which started in 2013 seemed stretched towards the end of 2017. Such situations can be dangerous and Shreyash Devalkar, fund manager of Axis Midcap Fund since 2016, was no longer comfortable. He decided that such frothy markets require to be treated carefully. 

He reduced his exposure to small-cap companies. The investments in mid-cap counters became more concentrated, and there was a shift to fewer companies which were also doing well from a fundamental perspective. The move helped him record gains in a year when most of his peers were struggling to avoid losses;