The Hindu Business Line : Magnum Global Fund

Magnum Global Fund predominantly invests in mid-cap stocks but retains the flexibility to time investments in other market cap segments as well. With increased activity in the mid-cap space over the past few months, the fund managed to outdo its large-cap peers. Between February and May 2007, the fund’s assets under management grew by 28 per cent, while its NAV increased just 8 per cent. The asset base increased from Rs 1,230 crore to Rs 1,579 crore. On an average, the fund held close to 28 per cent of the total assets as cash, for the past three months.

The fund has a well-diversified portfolio of 67 stocks, the top ten accounting for 29 per cent of the assets. Capital goods is still the preferred choice as it cornered 16 per cent of the assets. With fresh inflows, the fund stepped up the holdings in Bharat Earth Movers, Thermax, Crompton Greaves and SKF India. It marginally pruned the exposure to Havells India and KEI Industries. Elecon Engineering was added afresh.

While several other funds were cautious on construction sector, the fund took a positive stance and increased weight in the sector. Holdings in stocks such as Ansal Properties, D.S Kulkarni Developers, Gammon India and Jaiprakash Associates were enhanced.

It was a mixed bag in the pharma space. Dishman Pharmaceuticals and Indoco Remedies were accumulated to the existing ones, while holdings in Lupin, Matrix Laboratories and Shasun Chemicals were pruned. With cement prices remaining stable over the past quarter, the fund may have anticipated upside potential as it accumulated shares of India Cements and Shree Cement.

In the IT space, Patni Computers was added afresh even as holdings in Infotech Enterprises and Redington India increased. The fund partially sold KPIT Cummins and Tanla Solutions.

New Delhi Television saw a three-fold increase. Wire and Wireless India was the new entrant in the media and entertainment space. Other stocks that saw enhanced exposure include Ashok Leyland, Ballarpur Industries, Blue Dart Express and Raymond. Deccan Aviation and Mahindra Ugine Steel were other new additions.

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