Old Bridge Focused Fund Makes Strategic Portfolio Adjustments in February

Old Bridge Mutual Fund's Portfolio Update

February Portfolio Disclosure

The Old Bridge Focused Fund, managed by Kenneth Andrade, has made significant changes to its portfolio in February. Notably, the fund has completely exited the information technology sector by selling its entire stake of approximately 10.9 lakh shares in HCL Technologies.

Reduced IT Exposure

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This move follows the fund's earlier decision to fully exit Infosys in December, increasing its stake in HCL Technologies in the process. The stock accounted for 7.67% of assets under management (AUM) in January. Andrade's caution on the broader IT services space has been well-documented, with a focus on select players benefiting from automation and AI advancements.

Stock Performance

The complete exit from HCL Tech in February comes amid weakness in technology stocks. The Nifty IT index fell 19.5% in February and is down 3.11% so far in March, with a decline of 17.6% over the past six months. The index currently trades at around 17.88x one-year forward price-to-earnings, compared with its 10-year average of 22.51x.

New Positions and Stake Increases

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In February, the fund added a fresh position in Tata Motors Passenger Vehicles, buying approximately 16.3 lakh shares, which now accounts for 2.53% of AUM. The fund increased its stake in Axis Bank to 9.1 lakh shares, taking its portfolio weight to 5.12% of AUM. Holdings in Ramkrishna Forgings rose to 15.3 lakh shares, representing 3.43% of AUM, while exposure to Aurobindo Pharma was raised to 11.9 lakh shares, accounting for 5.88% of AUM.

Portfolio Analysis and Cash Holding

The portfolio remains concentrated, with exposure across financials, pharmaceuticals, metals, telecom, aviation, and industrial companies. Financial services remain the largest allocation through Shriram Finance, followed by pharmaceutical exposure via Aurobindo Pharma and banking through Axis Bank. The fund also maintains exposure to metals and commodities through Tata Steel, Hindustan Zinc, and Hindalco Industries, while consumption and mobility bets include Maruti Suzuki and InterGlobe Aviation.

Cash and Cash Equivalents

Cash and cash equivalents accounted for approximately 13% of the portfolio, which has a Rs 2,461 crore AUM. The fund's top holdings include Shriram Finance, which is the largest position at 9.15% of assets under management (AUM), followed by Aurobindo Pharma at 5.88%, Redington at 5.23%, and Axis Bank at 5.12%. Maruti Suzuki India rounds out the top five holdings with a portfolio weight of 4.7% of AUM.