The Hindu Business Line : Canequity Diversified

Canequity Diversified increased its holding in cash and cash equivalents over the three month ended February. Current assets constituted 7 per cent of the total assets in February against 1 per cent in November 2005. The fund has also altered its exposure to a number of stocks.

With a concentrated portfolio of about 40 stocks, the top ten stocks accounted for 60 per cent of the fund's portfolio. Construction, capital goods and pharma appear to be the favoured sectors as the fund increased its exposure in these spaces. While Gammon India made an entry into the portfolio, stocks of Bharat Heavy Electricals and IVRCL Infrastructures were accumulated.

Among the pharma stocks, Elder Pharmaceuticals and Glenmark Pharmaceuticals were added. Profits were booked in Matrix Laboratories after the stock ran up by more than 80 per cent during the fund's holding period. A number of metal stocks in the portfolio appear to have lost sheen. Tata Steel, Uttam Galva Steel and JSW Steel were sold. The fund instead took substantial exposure to Hindalco.

The under-performance of banking stocks compared to the broad market may have prompted the fund to exit this sector. Bank of Rajasthan and State Bank of India, the only representatives of the sector, were sold.

Though the fund has maintained 65-70 per cent exposure in stocks with market capitalisation of over Rs 2,000 crore, it has over the last three months shown interest in select small-cap stocks.

KEI Industries, Paramount Communications and Lloyd Electric were some of the stocks with a market capitalisation of less than Rs 500 crore that found favour. These exposures may be seen in the light of the potential for power and telecom equipment in the country.

Canequity Diversified was launched in 2003 and has an asset base of about Rs.100 crore in February 2006. Mr. N.S Sriram replaced Ms. U.P Bhat as the fund manager in January 2006.

Vidya Bala

More Stories on : Mutual Funds | Mutual Funds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page