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Taurus Starshare

Taurus Starshare, launched as a five year closed-end scheme in January '94 was converted into an ope

Taurus Starshare, launched as a five year closed-end scheme in January '94 was converted into an open-end fund in February 1999. Being a large fund launched before the IPO driven bull market of 1994, was saddled with its share of small cap illiquid junk stocks. Almost half the net assets of the fund were wiped in the falling market. This was followed by the merger of the Creditcapital Capital AMC with HB AMC. The fund took longer to restructure its portfolio. The fund has been able to consolidate its portfolio by weeding out junk stocks. Today, top 20 stocks account for 80% of net assets. And the leftovers -- untraded stocks in the portfolio have been valued as worthless. Some of these stocks can have significant latent gain potential, like NDTV. The total return from the fund is hardly anything, with its NAV just above par. But in a rising market in calendar 1999, the fund is up 129% against a 61% rise in the Sensex. The fund is well diversified and actively managed today. Even if the fund manages to deliver average returns from now, the latent portfolio can enhance returns as and when their value is unlocked.