The Hindu Business Line : Magnum Global

The first quarter of this year was not a good period for the global as well as the Indian markets. During this period, the BSE Sensex shed 22 per cent whereas the BSE Midcap Index lost close to 35 per cent. Here is a look at how Magnum Global handled the correction and how it shuffled its portfolio over the six-month period ended March.

The fund’s NAV and assets under management (AUM) each took a 16 per cent knock in March. It appears that the correction and not the outflows may have resulted in the decline in AUM.

The fund has a well-spread portfolio of 69 stocks. The fund has no concentrated exposures to stocks, with the top ten preferred stocks accounting for 33 per cent of the portfolio. The fund, however, appears to have taken a more focussed approach to sectors. The top three sectors account for 48 per cent of the portfolio.

Capital goods continues to be the fund manager’s choice. Interestingly, while several funds preferred to cut exposure to the sector the fund continued to be bullish. In the latest portfolio it forms one-fourth of total assets. The fund increased holdings in Bharati Shipyard, Havells India and Elecon Engineering and pruned Thermax, Punj Lloyd and BEML.

Construction stocks underwent a minor rejig, although the overall allocation to the sector remained unchanged. Holdings in Ansal Properties and Infrastructure, DS Kulkarni Developers and IVRCL Infrastructure were reduced. Exposure to stocks such as Gammon India, Consolidated Construction Construction, Jaiprakash Associates and Nagarjuna Construction were enhanced. Akruti City was the new addition.

Cement stocks became heavier in the portfolio. The fund accumulated shares of Century Textiles and Industries and Kesoram Industries and instead cut holdings in India Cements and Shree Cement.

With increased asset allocation to financial services, the fund added afresh Andhra Bank, India Infoline and recently listed Future Capital. Holding in Bank of Baroda was increased while exposure to Axis Bank was cut.

Usha Martin, Welspun Gujarat Stahl Rohren and Jindal Saw also witnessed some pruning. In the pharma space holdings in Dishman Pharmaceuticals, Indo Remedies and Shasun Chemicals and Drugs were reduced.

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