ABN AMRO Opportunities Fund is an open-ended fund with the objective of investing across the market capitalisation range. Its mandate permits it to take relatively concentrated exposures to a few sectors. The fund is aggressive in churning its portfolio.
During the three months ended January, 29 stocks were added afresh. In the latest portfolio, the fund had 49 stocks, with the top ten accounting for 32 per cent of assets. The top three sectors cornered 45 per cent of the assets. During this quarter, the fund increased exposures to sectors such as software, media and entertainment, finance and consumer non-durables.
The software sector occupied the top slot in the portfolio. Frontline IT stocks such as Infosys moved out of the portfolio while second-rung players such as NIIT Technologies, Mphasis, Aptech, Hinduja TMT, Tanla Solutions and Educomp Solutions were the new entrants.
It appears that several fund houses are positive on the media and entertainment sector. ABN AMRO has doubled exposures to the sector in its portfolio. NDTV, Jagran Prakashan, Wire and Wireless, Global Broadcast News and Network Eighteen Fincap were added afresh. With an increased allocation to financial services, Indiabulls Financials Services and Infrastructure Development were added; instead the fund moved out of Reliance Capital.
The construction space is undergoing profit-taking back of the strong run-up in stock prices and increased mortgage rates. The fund trimmed exposures to the sector marginally. Exposure to stocks such as Unitech, Hindustan Construction and Jaiprakash Associates were trimmed, while stocks such as Ansal Properties and Ansal Housing were newly added to the portfolio.
Capital goods was still thw favoured sector with a marginal reduction in the exposure. Exposures to Elecon Engineering, Crompton Greaves and BHEL were all pared. BEML, Siemens and newly listed Technocraft Industries found their way into the portfolio.
Cement stocks lost favour with the fund with allocations brought down from 10.8 per cent to 4 per cent of assets. Grasim Industries and India Cements moved out completely, while exposure to Orient Paper and Industries was pared.