'Good quality companies are still expensive'

What has resulted in the outperformance by your fund in the last one year? Portfolio performance over any short period is driven by individual stock-price movements in the portfolio. Stocks like Bajaj Holdings, HDFC Bank, Balkrishna Industries and Alphabet have done well in the past year. Also, we have about 24 per cent cash in our portfolio. We have been holding this cash for a while now since it has been difficult to find bottom-up opportunities at reasonable valuations. Further, we also have about 27 per cent invested in foreign securities, which don't necessarily move in tandem with India stocks. Both these parts of the portfolio have given a reasonable cushion to our portfolio returns to be able to outperform the peers and the benchmark. How do you pick stocks for this fund? Our flags

This article was originally published on September 24, 2018.