Old Bridge Asset Management Company is trying to focus on launching market capitalisation agnostic products, its chief executive Ruchi Pandey told reporters announcing the launch of the AMC’s third scheme in the flexi-cap equity category.
The company received SEBI approval to act as an asset management company in September 2023 and have two existing schemes focused and arbitrage having assets worth Rs 2,280 crore.
Kenneth Andrade, chief investment officer explained the reason that the AMC took two years to launch a new product as it wanted its existing product to reach a certain scale and added that the company first wants to gain significant market share in the existing categories before launching new schemes.
Pandey said if at some point of time we feel market is throwing an opportunity, even if we have to do a small cap or micro-cap kind of portfolio, the endeavour would be to do a value rather than a small-cap fund because the categorisation defeats the whole purpose of investment managers. It is the fiduciary responsibility of the fund manager to shift themes and sectors rather than launching sector-based funds.
According to the fund house, the BSE 500 index from September 24 has entered the same phase the Sensex was in 2007 December after which it remained flat for six years following a sharp four-year rally. Andrade said even if the markets do nothing, the biggest opportunity is not in capitalisation. He added that currently only 20% stocks in the small-cap index which is investable, as time goes by, it will be much more.
On earnings growth, he expects FY27 to be the same as FY26, the low double digit growth will be largely led by financials and commodities might play a very large part.