Srivatsa has been steering UTI Large & Midcap Fund to steady 2nd quartile performances over 1 yr, 3 yr and 5 yr timeframes. His goal is to deliver long term top quartile performance (5 yr +horizons) on the back of steady Y-o-Y performances.
His style is marked by early entries into sectors (including cap goods, PSU banks etc) and exits when momentum takes stocks out of reasonable value zone. While this may hamper his fund from capturing outsized gains during peak momentum phases, it also helps him avoid the pitfalls of being on the wrong side when the trend turns.
Private sector banks is a key focus area for Srivatsa now –he sees good value from a long term perspective as well as good relative value in a market which has few pockets of value left.
Telecom is another sector he is warming up to, with the duopoly now in a position to flex pricing muscle.
Sectors he is underweight and continues to reduce include global cyclicals including IT and metals, as the global growth outlook remains somewhat unclear.
The fund is 60% weighted to large caps and 40% to midcaps. With 65% active bets, Srivatsa strives to deliver alpha even as he focuses on margin of safety and value to prevent costly blunders.