1. This three billion dollar asset manager is betting big on Cholamandalam Finance

This three billion dollar asset manager is betting big on Cholamandalam Finance

Cartica Management LLC, which manages more than $3 billion of assets globally is betting big on the Murugappa group’s financial services arm, Cholamandalam Finance.

By: | Updated: September 13, 2017 6:17 PM
tax-free benefit, amendment, gratuity of employees, Centre Cartica Managment’s portfolio has sizeable allocation to Shree Cements, Marico, TVS Motors, Page industries, PI Industries and RBL from India. (Image: PTI)

Cartica Management LLC, which manages more than $3 billion of assets globally is betting big on the Murugappa group’s financial services arm, Cholamandalam Finance. Pointing to the strengths of the company, Teresa Barger, the co-founder and CEO of Cartica Management told ET Now, “We only go into high quality companies with high integrity sponsors. So we are in admiration of the Murugappa group.” Elaborating on the positives of the company, she said, “It’s (Cholamandalam) niche in the market. Its ability to use data on where it’s going in terms of new products. They are growing with smaller footprint, we like the access to the SMEs, along with their superior credit processes.”

The firm which focuses on active ownership of emerging market companies is betting big on Indian smallcap and midcap scrips. Cartica Managment’s portfolio has sizeable allocation to Shree Cements, Marico, TVS Motors, Page industries, PI Industries and RBL from India.

Speaking about India’s prospects going forward, she said, “We really like the theme of financialisation in India. I think that’s here to stay.” When Teresa Barger explained that Cartica Management cannot cannot buy Kotak Mahindra bank or ICICI bank stocks, as Cartica Management is only into small and midcaps right now, the anchor pointed out that the firm holds Eicher Motors. In response, Teresa Barger said that the Eicher Motors’ market capitalisation was just $4 billion when they bought the stock. Today its greater than $10 billion, she said.

Earlier, Economic Times reported that Eicher Motors is revving up to make a binding offer to acquire the iconic Italian superbikes Ducati for $1.8 billion-$2 billion. When asked about her take on the subject, Teresa Barger told the channel, “ Our calculation is that it’s not going to matter very much. It’s not going to be a big game changer either way, negative or positive.”

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