Not sure whats the big issue if their calls seem more akin to trading calls rather than based on fundamentals. I dont think they have ever said they invest purely based on fundamentals. I do think they have time and again said their key strength and focus lies in identifying sector bullishness.
Now as far as the above articles are concerned, 2 points :-
- Articles are 6 months apart – good enough time for a view to change.
- First article talks about PSUs as a basket. The exits mentioned in the 2nd article are specifically PSU banks. I believe they still have PSUs in their funds.
Having said that, to each his own. Those who think and believe that high turnover ratios are bad should obviously stay away from Quant funds. I personally belong to a club where I think a higher churn is infact needed to generate that alpha otherwise one might as well be in a basket of index funds ( which is what I think most mutual fund investors should in any case move towards ).
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