The Hindu Business Line : Kotak Opportunities

Kotak Opportunities is a diversified equity scheme with the flexibility to invest across market capitalisations. A look at the portfolio reshuffle in July-October 2006 shows that the top 10 holdings accounted for 48 per cent of the asset allocation.

Frontline software stock Infosys continued to enjoy the fund's confidence and was retained at the top slot in terms of asset allocation. In the above quarter, the fund showed interest in sectors such as software, capital goods, petroleum products, banks and media and entertainment. Over the same period, the fund pruned exposure to sectors such as auto, cement, consumer non-durables, pharma and ferrous metals. Fertiliser was the lone sector to step out of the portfolio.

The fund evinced interest in software stocks and enhanced its holding on the back of improved earnings by IT companies over the past quarter. It lowered its exposure in Satyam Computer and instead added afresh the stock of HCL Technologies.

Capital goods regained the fund's confidence and the asset allocation to the sector was increased. Suzlon Energy moved into the portfolio while ABG Heavy Industries was added. BHEL, which had a sharp run-up during the May rally, underwent profit booking.

Banking stocks attracted the attention of several fund-houses, including this one. This sector, which under-performed the market for the past year, was back in action on account of impressive earnings numbers declared by most of the frontline public and private sector banks. Exposure to the sector was enhanced from 5.5 per cent to 11.7 per cent. Bank of India and Syndicate Bank moved out of the portfolio, its counterparts Andhra Bank and Punjab National Bank were included. ICICI Bank was added.

HT Media found a berth into the portfolio and cornered 4.3 per cent of the asset allocation. Exposure to Television Eighteen was increased.

In auto space, the fund pared exposure to the lone stock Mahindra and Mahindra. The fund also trimmed its exposure to Madras Cements and Ultratech Cement. Consumer non-durables fell out of favour, with exposure to the segment reduced. ITC and Eveready Industries were sold partially. The fund pared exposures in SAIL and Jindal Steel & Power.

: Kotak Opportunities Fund was launched in August 2004. Mr Anand Shah manages the fund and the asset size is Rs.287.4 crore.

Suresh Parthasarathy

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