Old Bridge Mutual Fund's new fund offer will focus on select companies that are expected to perform well through the decade.
"We are building a portfolio of companies which will be relevant through the end of the decade," Kenneth Andrade, founder and chief investment officer at Old Bridge Capital Management, told NDTV Profit.
"We will also eliminate large parts of industries which we think are reasonably priced and in a consolidation phase and won't be able to participate in the momentum. It won't be a diversified pool of companies; it will be selective," he said.
The Old Bridge Focused Equity Fund will be a multi-cap offering and contain a portfolio of 30 stocks. The NFO will open on Jan. 17 and will be open for three days.
"By categories, these companies can be mid caps. As an investment process, we have always bought the largest companies in an industry. When we buy such a company which is not doing well, they are usually at mid-market valuations. That's the sweet spot we try to optimise," Andrade said.
Volatility Risk
Andrade, who has over 27 years of experience, said that the fund's portfolio could go through a reasonable period of volatility "and tend to be slightly away from benchmarks".
"We are allocating in 30 companies out of the BSE 500 ones. It's about optimising the entire lot," he said.
The selection of companies that are financially solvent and are at reasonable valuations will take care of volatility risk, according to him.
Commodities are going through a down cycle and a reasonable amount of consolidation will come out of some of the erstwhile favourite sectors, he said. "We have to look beyond 2024 and (we) are not putting a portfolio together for just one year."
Watch the full conversation here:
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