Launched in December 1998, K-30 is the diversified equity fund from the Kotak Mahindra AMC stable. While the fund hasn't exactly been a chart buster, it has nevertheless delivered an impressive annualised return of 40.81 per cent since inception. Fund manager S N Rajan has largely maintained a diversified portfolio with investments spread across software, pharma, cement, FMCG and finance stocks. Rajan is the third fund manager for the "Favourite Stock" series. And Like Sukumar and Aniket Inamdar, Rajan is "bowled over" by Infosys. But it doesn't come as a surprise, does it?
1. During its tenure of nearly two years, which has been your favourite stock and why do you like it?
Rajan: Clearly, Infosys has been the favourite stock because it has consistently over-delivered on expectations in terms of results. It can easily boast of the highest standards of transparency and quality of leadership. We have not seen any rash acts in terms of acquisitions in spite of tremendous pressure form the investing community. As on December 15, Infosys is the top holding of the fund with a weight of nearly 14% in the portfolio.
2. Even if your favourite stock is perceived to be overvalued, would you still buy more of it?
Rajan: If we find some other stock, which appears undervalued even though it is not in the same class as our favourite stock, whether Infosys or otherwise, we would buy the same.
3. Which of the mid-cap holdings in K-30 are tomorrow's bluechips and Why?
Rajan: Polaris looks attractive because it has got beaten down due to the controversy regarding its recent acquisition attempt of a US company. Its has a distinguished client list and if the recent controversy gets settled, it is bound to move up.
4. Which, in your opinion, are the non-performing holdings in your portfolio and would U exit them at first opportunity?
Rajan: We would not like to comment on stocks that we would be dis-investing till we actually exit.