The Hindu Business Line : `Chances of finding multi-baggers are never ruled out completely'

Kolkata May 6 A tete-a-tete with Mr Ravi Mehrotra, Head of Asia Asset Management Companies, AIG Global Investment Group, leaves firm imprints on the mind. The man who has seen it all - he was with Kothari Pioneer, the first private-sector fund - brings up diverse topics, ranging from the possibility of finding multi-baggers to fund distribution, then and now.

Excerpts.

What is the one thing that has changed since India allowed private players in the funds domain?

Inevitably, distribution. A part of the distribution, as we saw it in those early days, was almost straight-laced compared to the standards that we see currently. It has also become very broadbased. More institutions have started doing business.

Today, we have so many players actively nurturing their clients. These include a bunch of sharp individuals who are quite aware of the dynamics in the market and the trends that are emerging on the investments front. Now, this is what can be called a definitive improvement.

Your tribe these days talks about stocks like Bharti, the ultimate multi-bagger for many. Was there an equivalent then?

I can easily name Infosys here. That stock, as many of us will no doubt remember, was a discovery of sorts. Over time, it started figuring in a lot of portfolios even as large amounts of money were chasing it. The point is the chances of finding such stocks are never ruled out completely. It is just that such entities are extremely hard to find. Take, for instance, Bharti... I wonder how many investors were able to spot it when it was at about Rs 40 or so. Today, it is well over Rs 800. And that is a huge difference.

You follow other mutual fund markets in Asia. Does the Indian scenario have a parallel elsewhere?

Yes and no. The fact is that India is just beginning to shape up, a trend confirmed by the recent entry of several large multinational asset management groups. I am talking about the AIGs and the JP Morgans of the world. UBS will also be here shortly. We are learning, and learning fast. Asia has a host of smaller countries, none as populous as ours. Take Taiwan, for instance. It has gone through significant changes already. A market like that will have a lot of unique features.

The AIG group has a lot of plans in India. Where will asset management fit in?

AIG Global Investment Group has capabilities in a number of areas, hedge funds, private equity and real estate included. In India, we have just launched the first product. We will scale up the business, based on the simple premise that the market is expanding. I must tell you that we try to adapt to the interests of our investors, courtesy a stake in the class of asset in question.

Will your maiden product replicate AIG's India-specific fund?

Not really. The India fund is largely large-cap. The fund we have launched here will not follow just a single style. If you consider long term investments, you will see that no specific style has outperformed unfailingly over the long term. It (the fund) will be free to pick stocks without limiting itself to one or more theme. There will be no market cap limitation either.

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