"Infosys's vision, quality of management, growth and profitability is unparalleled in the IT services sector"
04-Dec-2000 •Aabhas Pandya
Chola Freedom Technology is a convert. Launched as a diversified equity fund, Chola Freedom Growth by Cholamandalam Cazenove AMC, the fund was turned into a technology fund in March 2000. Launched just before the ICE rally fizzled out on the bourse, the fund has lost 37.41% since launch. The fund manager, Aniket Inamdar is bullish on large technology companies, which are likely to show strong performance. "While many mid-cap and small cap IT stocks have declared poor or average results, almost all the larger companies have declared excellent results,'' he states to buttress his point. Like Sukumar at Kothari Pioneer, Aniket also considers Infosys to be his favourite pick.
1.Which has been your favourite stock for Chola Freedom Technology and why?
Aniket: Infosys has been my best pick. The company's vision, quality of management, growth and profitability is unparalleled in the IT services sector.
2. Even if your favourite stock was perceived to be overvalued, would you still buy more quantity?
Aniket: No, we look at valuations and price targets in a disciplined manner. Also, a diversified portfolio means you cannot have excess weightage in any one stock even if it is your favourite. On the question of being overvalued, many of quality stocks like Infosys or Wipro are richly valued and have a significant premium over others due to many reasons. So quite often we will not have 0 or 1 situation where the stock is under or over valued.
3. Which mid-cap holdings in your portfolio are tomorrow's bluechips?
Aniket: Many mid-caps face a challenging task of growing into the league of large service companies. Amongst them, Digital, NIIT and Polaris have promising growth prospects but not in any order.
4. Which, in your opinion, are the non-performing holdings in your portfolio and would you exit them at first opportunity?
Aniket: If we think we have non-performers in our portfolio, we would tend to remove them since we follow active portfolio management.