The Hindu Business Line : <I>Sundaram Leadership </I>

From an initial asset base of Rs 75 crore, Sundaram India Leadership's net asset value has trebled to Rs 215 crore in February 2006. Although large-cap stocks continue to dominate the portfolio, the fund sports a good number of mid and small-cap stocks as well. Twenty per cent of the net assets were invested in stocks with a market capitalisation of less than Rs 2,000 crore. We take a look at how the fund managed its portfolio between December 2005 andFebruary 2006.

Sundaram India Leadership has reduced its exposure to the top ten stocks from 30 per cent to 25 per cent. Exposure to individual stocks was also limited to 3 per cent. Although the fund's allocation to IT sector remained unchanged, stocks such as Infosys and Wipro moved out of the top five slots. Voltas and Bajaj Hindusthan replaced these stocks.

Sector shuffle: Stocks from industrial manufacturing, consumer goods and construction sectors accounted for nearly 50 percent of the portfolio value. While exposures in consumer and pharma sectors rose, banking and metals found less favour. Exposure to engineering space remained unchanged though there was a re-shuffling of stocks. -ecently listed stocks such as AIA Engineering and Punj Lloyd were new additions in the segment.

While holdings in Siemens were slightly pruned, that in Larsen & Toubro and Suzlon Energy were accumulated. In the construction space, holding in Jaiprakash Associates rose by 70 per cent.

The fund's new found interest in media and entertainment stocks was reflected in fresh entry into stocks as Jagran Prakashan, K Sera Sera Productions and INOX Leisure.

These stocks accounted for 2.6 per cent of the portfolio as of February. The recent upward trend in pharma stocks may have prompted the fund to increase allocation to the sector.

Vidya Bala

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