Jefferies Hikes HDFC Bank Weight, Adds Siemens To Asia Long Portfolio

As the year draws to a close, global investment firm Jefferies has announced a series of adjustments to its long-only equity portfolios in Asia, excluding Japan. The changes reflect a strategic rebalancing of key holdings.

In its Asia ex-Japan portfolio, Jefferies will reintroduce an investment in HDFC Bank Ltd. with a 4% weighting. The brokerage will reduce its stakes in Macrotech Developers Ltd.,, Larsen & Toubro Ltd., ICICI Bank Ltd., and Axis Bank Ltd. by one percentage point each to pay for this investment.

Jefferies will also add Siemens Ltd. to its Asia ex-Japan long-only equity portfolio with a 4% weighting, by removing the investment in Samsung Electronics Pref and reducing the stake in SK Hynix by one percentage point.

For its global equity portfolio, Jefferies will remove its investment in Samsung Electronics Pref and replace it with French power equipment company Schneider Electric SE. This move aligns with the firm's focus on diversifying its global exposure, particularly in the power sector.

For the India long-only portfolio, an investment in Siemens will be introduced with a 4% weighting by removing the investment in AU Small Finance Bank Ltd. The investment in HDFC Bank will also be increased by one percentage point by shaving the investment in Axis Bank.

The China long-only portfolio will also undergo adjustments, with Jefferies increasing its investments in Alibaba Group Holding Ltd. and AIA Group Ltd. by one percentage point each. The increased allocation will be funded by trimming stakes in Sun Hung Kai Properties Ltd. and KE Holdings Inc.

Notably, Jefferies has opted for no changes in its Japan long-only equity portfolio.

These adjustments reflect a strategic shift in Jefferies’ approach, focusing on reinforcing positions in companies with strong growth potential while optimizing portfolio risks and returns as 2024 approaches.