'More action on reforms front needed'

Vinit Sambre, Fund Manager, DSP BlackRock, believes that a 1-year time horizon for stocks provides you the highest amount of visibility for any company. He tells what one should look for in a micro-cap stock. Could you brief us on your investment philosophy? As far as the micro-cap fund is concerned, our approach is largely bottom-up stock selection. Whereas in our large-cap funds we follow a mix of both top-down and bottom-up strategy. The small- and mid-cap companies are highly promoter driven and their fortunes are largely dependent on the management strategy. Hence, it is very important to carry out in-depth analysis before investing. Do you look for anything particular while investing in a micro-cap stock? For instance, a must have variable that makes you want to invest or something which prompts you to avoid investment in a company? In case of micro-cap stocks, we are positively inclined towards businesses which have a very strong and consistent growth visibility over the foreseeable future, sound management strategy and good corporate governance. As mentioned earlier, since these businesses are mostly promoter driven, it is important that one understands the capability of the management and whether they have the drive to take it forward in the industry or the segment in which they are operating. Meeting the managem