Kotak Mahindra Asset Management Company is bullish on healthcare and mid-cap stocks as it adopts a bottom-up investment strategy [1].
This shift in focus reflects a broader effort to navigate rising geopolitical tensions and shifting earnings trends that are impacting global markets. By prioritizing specific stock selection over broad sector trends, the firm aims to identify undervalued assets that can withstand macroeconomic volatility.
Shibani Kurian, Senior Fund Manager and Head of Equity Research at Kotak AMC, said the current environment is a "bottom-up stock picking market" [1]. Kurian said the firm is favoring healthcare, financials, and industrials, alongside mid-cap equities [1].
While the firm maintains an optimistic outlook on several sectors, Kurian said she remains cautious regarding the information technology sector [1]. This hesitation comes as the firm monitors global trends and anticipates upcoming policy changes from the Reserve Bank of India [1].
The strategy emphasizes a granular approach to research to mitigate risks associated with broader market swings. By focusing on individual company fundamentals, Kotak AMC seeks to capitalize on growth in the mid-cap space, and the stability of the healthcare sector [1].
“"bottom-up stock picking market"”
The transition to a bottom-up strategy suggests that systemic risks, such as geopolitical instability and regulatory shifts from the RBI, are making top-down sector bets too risky. By focusing on mid-caps and healthcare, Kotak AMC is pivoting toward sectors with potentially higher organic growth and defensive qualities, while distancing itself from the volatility currently affecting the IT sector.
