Harish Krishnan takes over as Head of Equity at ABSL AMC with a mandate to strengthen performance delivery and bring their funds back to outperformance mode. He has a very clear diagnosis of the source of underperformance and a clear plan of action on how the team will be addressing this. On a separate note, he also hopes to bring in more quant focus to supplement the traditional fundamentals driven approach to generate more and better investment ideas.
2023 was an outlier in terms of equity returns – 50% of NSE500 stocks gave close to 10% alpha – which is highly unusual and very difficult to replicate in the following year. We have discounted forward earnings substantially in 2023. CY24 can still be a positive year – but expect sharply polarized returns.
Is there a science to getting your sector calls right? Harish shares details of his fundamental tenets and his framework that guides his sector calls – insights that are well worth imbibing for all advisors, distributors and investors.
Harish names 4 dark horse sectors that score well on his framework: pharmaceuticals, metals, consumer discretionary and media. Sectors that can continue doing well albeit at a slower pace than CY23 will include realty, cement, technology and industrials. Sectors he will be cautious on inCY24 include defense, FMCG, smaller banks and NBFCs.