Mid-cap mogul Kenneth Andrade set to launch first mutual fund on Jan 17

Old Bridge Focused Equity Fund will be open for subscription between January 17-19

Kenneth Andrade set to launch first mutual fund on Jan 17

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Kenneth Andrade, a household name in the Indian investment community for delivering outsized returns in his days as a fund manager, is marking his return to the mutual fund industry by launching his company Old Bridge Mutual Fund 's maiden equity scheme, titled Old Bridge Focused Equity Fund.

Old Bridge Focused Equity Fund's new fund offer (NFO) will open for subscription on January 17 and close on January 19.

This comes after Andrade's Old Bridge received an-principal approval from SEBI, the markets regulator, to launch their mutual funds in September 2023.

Speaking about the launch of his fund, Kenneth Andrade, CIO of Old Bridge Asset Management Private Limited, said. "The fund's strategy is aligned with our investment philosophy, focusing on early-cycle businesses with strong leadership and growth potential. Our style has always been mid-market, so it will be more of a focused fund reliant on mid-caps."

This fund will have a maximum of 30 stocks across different market capitalisation.

Andrade's track record

Andrade, who had built a reputation for his strategic investments in hidden mid-cap and small-cap gems and was even hailed as a mid-cap mogul by Forbes India, shot to the limelight when he helped IDFC Premier Equity Fund (now IDFC Flexi Cap Fund) achieve a staggering 21 per cent returns as against the category average of just a tick above 11 per cent between February 2007 and September 2015. Unsurprisingly, the fund topped the charts in its category during this period.

His success also extended to the IDFC Sterling Value Fund (now Bandhan Value Fund ), where he delivered 13.53 per cent returns compared to the category average of 8.89 per cent between March 2008 and June 2013.

Kenneth Andrade's track record at IDFC Mutual Fund

Scheme From Till Returns (%) Category average (%) Rank
IDFC Focused Equity Fund (Bandhan Focused Equity) Mar 16, 2006 Apr 25, 2010 15.43 12.67 7/19
IDFC Large Cap (Bandhan Large Cap) Jun 9, 2006 Sep 6, 2015 8.67 10.32 28/40
IDFC Premier Equity (Bandhan Flexi Cap) Feb 14, 2007 Sep 6, 2015 21.06 11.09 1/20
IDFC Sterling Value (Bandhan Sterling Value) Mar 7, 2008 June 26, 2013 13.53 8.89 2/12
IDFC Tax Advantage (Bandhan ELSS Tax Saver) July 23, 2009 Sep 21, 2010 41.97 37.52 9/23
IDFC Infrastructure (Bandhan Infrastructure) Mar 8, 2011 Jun 26, 2013 -13.35 -9.25 17/20
Note: Open-end equity schemes and those managed for over a year were considered.

Before joining IDFC Mutual Fund, where he worked for over a decade (2005-2015), the Mumbai-based fund manager worked with Kotak Mahindra Mutual Fund, where he used to manage Kotak MNC Fund and Kotak Mid Cap Fund.

Andrade, a confessed music aficionado, had moved out of the mutual fund industry after his successful stint with IDFC Mutual Fund and ventured into portfolio management with Old Bridge Capital Management in 2015.

The last word

The fund management landscape has changed since 2015.

It has become an even more competitive business. Old Bridge Mutual Fund will face a stiff challenge from established players and newcomers alike. Some of the notable newcomers include Zerodha and Helios. Soon, Jio Financial Services, partnering with BlackRock, will also make its presence felt in the market.

That said, the re-entry of seasoned investment managers like Andrade and Samir Arora (of Helios Mutual Fund) is a welcome change, especially with some high-profile fund managers like Prashant Jain heading out the other exit door in recent years.

Whether Andrade can reclaim his magic is something only time will tell. But the fact that the mutual fund industry has started to lure in some of the finest in the business should bode well for investors.

Also watch: Money Masters with Kenneth Andrade

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