ABSL Flexicap’s performance has seen a sharp turnaround under Harish Krishnan’s stewardship over the last 1 yr from bottom quartile to top quartile now in 3 and 6 month timeframes.
Harish has simultaneously been focusing on strengthening processes and seeding a culture of taking calculated risks with more high conviction bets across the team, within a robust risk framework.
Over 80% of ABSL Flexicap’s Fund comprises “best-in-breed” bottom up stock picks – businesses that have to be best in class on size or growth or margins. This brings a strong quality focus onto the portfolio.
About 20% of the portfolio is made up of top down sector calls – often dark horses and sometimes contra picks. Cement, metals and consumer durables are his current dark horse plays.
Top down sector calls are made on the basis of a four-step proprietary model that looks at multiple parameters to discern emerging sectoral opportunities.
Key performance drivers for the fund over the last 1 year have been overweight positions in IT and pharma and underweight positions in banks.
Harish is confident that the processes he has put in place will significantly enhance performance consistency – not just of the flexicap fund – but across the equity fund suite.