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ETWealthMorningstarRanking:Herearethetop10Fund
Managers2015
PostaComment

BySanketDhanorkar,ETBureau|7Sep,2015,08.00AMIST

Onthehighseas,ittakeslittletoturnthetideandbetossedintoastormofuncertainty.
Atsuchtimes,ithelpstoknowthataseasonedhandisatthehelm.2015hasturnedoutto
beachoppysea,withtheIndianstockmarketsrockingintandemwiththeglobalturmoil.As
despairingmarketplayershavekepttabsontheirinvestments,asectionofinvestorshas
satbackwithoutmuchconcern,confidentthattheirhardearnedmoneyisingoodhands.To
showcasethesecompetentpairsofhands,welistthetop10fundmanagersinthisissueof
ETWealth.
Fundmanagersareentrustedwithlargesumsofinvestors'money,aresponsibilitythat
cannotbetakenlightly.Thepersonneedstohaveathoroughunderstandingofthe
economyanddynamicsofthebusinessesthatheinvestsin.Hemustbeskilledenoughto
spotgoodinvestmentopportunities,irrespectiveoftheprevailingmarketconditions.He
shouldalsobeabletodrownoutthenoiseandsticktohisconvictionevenwhenthe
overwhelmingsentimentsuggestsotherwise.

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Atthesametime,heshouldbeabletoownuptobaddecisions,takecorrectivestepsandensurethatthemistakesarenotrepeated.
Aboveall,heneedstoensurethattheinvestorisnotexposedtoundueriskwhiletryingtogeneratehealthyreturnsforhim.
Onlyahandfuloffundmanagerscanboastallthesequalities,andtofindsuchgems,ETWealth,inassociationwithMorningstar,a
mutualfundresearchfirm,hasconductedacomprehensiveexercise.Wehavesiftedthroughpilesofdatatoidentifythetop10investing
wizardsinthecountry(seeHowtherankingwasdone).
Tobesure,thesuccessofmostofthesefundmanagersstemsnotmerelyfromtheirownirrefutableskills,butalsofromthequalityof
processesinplaceatthefundhousewheretheyoperate,aswellasthecrucialcontributionbythesupportingteamofinhouseanalysts.
Ofcourse,someofthetopperformersinthislistalsoowetheirunmatchedperformancetotherallyinthemidandsmallcapstock
segmentoverthepastyearandahalf.
Havingmanagedfundsinvestinginthesamecategoryofstocks,theirreturnprofilehasbeenboostedduetothisrally.Asaresult,other

prominentfundmanagers,withlargecaporientedfundsundertheirbelt,havelostout.Andasmarketconditionschangeovertime,some
ofthefundmanagersmentionedherearelikelytomakewayforothers.
Therearenoperennialwinnersintheequityinvestinggame.Nevertheless,investorsintherespectivefundscantaketremendouscomfort
fromthefactthatthesearethehandsthataresteeringtheirships.Readontoknowmoreabouttheseindividualsandwhatmakesthem
tick.
1)CHIRAGSETALVAD,HDFCMUTUALFUND

Brief
Overtheyears,Setalvadhasestablishedhiscredentialsasaqualityfundmanager,especiallyinthemidcapspace.Hehasprovenhis
abilitytoexecutethefund'sstrategyacrossbullandbearphasesofthemarket.
Setalvadstrivestoseekanindepthunderstandingofabusinessbeforeinvestinginit.Heendeavourstosticktohiscircleofcompetence
andavoidsbusinessesthathedoesn'tunderstandwell.Hisstrengthliesinconductingdifferentiated,alternativeresearch,suchas
meetingacompany'ssupplyanddemandchainparticipants,talkingtotheregulators,etc.Hesaysthisisnecessarytogetanunbiased
viewandunderstandthegroundrealityofthecompany,whichmanynotbevisibleinnumbers.
Heprefersqualitybusinessesgrowingatahealthyrateofatleast1520%annuallyandgeneratingafreecashflowonaconsistentbasis.

Setalvadalsoinsistsontakingadvantageofmarketdipswhilebuyingthesestocks,investswithatimehorizonof35yearsandkeepsa
lowportfolioturnover.Besides,heiscomfortableaboutdeviatingsubstantiallyfromthebenchmarkindexwhilebuildingaportfolio.Inline
withthefundhousephilosophy,hedoesnottakecashcallsandprefersbeingfullyinvestedatalltimes.Healsotendstodiversifyheavily
inhisportfolios.
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Greatestlesson:Theimportanceofcapitalpreservation.Oftenwefocusonidentifyingwinners,notonavoidingmistakes.
What'sworkedforme:Astockspecificapproach.Thefocusisonqualitybusinessesrunbycompetentmanagementsavailableata
reasonableprice.
InvestmentsIregret:Wherewehavesoldtooearlyandhaveboughtbusinessesthathavelostmoney.Iregretsellingstockssimply
becausetheylookedfairlyvaluedwhenseenfromaoneyearforwardmultipleperspective.Asaresultwemissedcapturingthepowerof
compounding.
Managingrisk:Buybusinessesatadiscounttotheirintrinsicvaluetominimisepricerisk.Managefundamentalriskbystayingwithinthe
circleofcompetenceandinvestinginbusinessesthatarerunwell.Asfortheportfoliorisk,wefollowmetricswhichlimitinvestmentper
company,sector,etc.
Onportfoliochurn:Weaimtokeepthechurninglow.Ithelpsminimisethecostforinvestors.
Outlookfornext5years:ThelongtermseculargrowthprospectsforIndiaaresound.Thereisastrongconsumptionstory,andthe
investmentcycleshouldpickupaswell.
Advicefornoviceinvestors:Assetallocationisthemaindriverforreturns.Focusongettinganappropriateassetmixbasedonrisk
appetite,timehorizon,andliquidityneeds.Don'tfollowtheherd.Investforthelongtermandmonitorinvestmentsperiodically.Finally,
investregularlyandtryandputadditionalcapitaltoworkintougheconomicconditions.
2)NEELESHSURANA,MIRAEASSETGLOBALINVESTMENTS

Brief
Surana'sfundshavebeenoutperformingboththebenchmarkindexandcategorypeerssinceinception.Hisfunds,MiraeAssetIndia
OpportunitiesandMiraeAssetEmergingBluechip,havebeentabletoppersintheirrespectivecategories,evenastheyhavekeptrisk
significantlylow.
Bottomupstockselectionhasbeencriticaloverthepastfiveyearsaperiodcharacterisedbyhighdegreeofvolatilityanddivergent
performancewithinsectorsandSuranahasmadethemostofthisstrategy.Hebelievesthatalpha(returnhigherthanbenchmark)can
begeneratedthroughtherightsetofstocks,notbysectorrotation.Thisisthereasonhedoesn'tdeviatesignificantlyintermsofsector
allocationrelativetothebenchmark.Heprefersquality,growthorientedbusinesses,butonlyatareasonablepriceandlikestoholdthe
stocksforlongperiods.Suranadoesn'tshyfromtakingcontrariancalls.Heassertsthattheidealtimetoaccumulateiswhengood
businessesgothroughtoughtimes,whentheshorttermprospectsareimpaired,butthelongtermqualityremainsintact.Hedoesn'ttake
cashcallsorchurntheportfolio,insistingthatstockselectionandportfolioconstructionhaveamoremeaningfulimpactontheoverall
returns.

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Greatestlesson:Donotsellagoodbusinessearly.

What'sworkedforme:Disciplinedapproachtoinvesting,withfocusonquality.
InvestmentsIregret:Mainlyrelatedtoerrorsofomission.Missingafewgoodstocksprimarilyduetolackofunderstandingofthe
potentialofbusiness.
Managingrisk:Atportfoliolevel,riskmitigationisdonebyassigningappropriateweightsandnotgoingoverboardonaparticularstyle,
themeorastock.Atstocklevel,therisksareassociatedwithbusiness,management,ornothavinganadequatemarginofsafety.
Onportfoliochurn:Thefundsareactivelymanagedandhavea'core'portion,aswellas'tactical'holding.Coreholdingstypicallyhavea
verylowchurn.
Outlookfornext5years:Equitiesasanassetclassisbetterpoisedforthenextfiveyearscomparedtorealestate,gold,etc.
Advicefornoviceinvestors:Donotbedeterredbymacronoises.Investinadisciplinedway.
3)VINITSAMBRE,DSPBLACKROCKMUTUALFUND

Brief
Havingastrategyfocusingonsmallandmicrocapscanbetrickyandentailrisks.Managingtheliquiditysituationinthesethinlytraded
scrips,recalibratingthefundexposurewhensmallercompanieseventuallyoutgrowthefundmandatearejustsomeofthechallengesthe
fundmanagerhastoface.Yet,Sambreseemstoexecutethestrategywithfinesse.
AftertakingovertheDSPBlackRockMicroCapFundin2010,hehaskeptthechurntoaminimumandhasonlyunderperformedthe
categorypeersonceinacalendaryear,thattoo,marginally.
Hisabilitytocapturethemarketupsideismuchbetterthanmostpeersandheisalsogoodatcontainingthedownsiderisk.Hisstrength
liesinextensivebottomupresearch,identifyingstrong,growthorientedbusinesseswithhealthycashflowsandsupportedbycapable
management.Sambredoesn'tliketobetieddowntothebenchmarkindex.Headoptsanunconstrained,freewheelingapproach.Histop
sectorbetsbearamarkedcontrasttobothbenchmarkandcategorypeers.Hepreferstogiveameaningfulweighttohishighconviction
betstoensuretheirperformancehasadequatebearingontheoverallreturns.Maintaininginvestingdisciplineiscriticalforafundwithan

inherentlyhighriskprofileanditisevidentinthewaySambrehandlesit.

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Greatestlesson:Adisciplinedapproachtoinvestmentyieldssuperiorreturnsoverthelongterm.
What'sworkedforme:Firstly,abigshiftfromunorganisedtoorganisedsegmentacrossvariouscategories.Secondly,textileand
specialtychemicals,asacategory,isbenefitingduetosignificantbusinessthatiscomingfromthedevelopednations.Finally,the
investmentinfastgrowingNBFCshasdonewellforthefund.
Managingrisk:Thebiggestriskemanatesfromafaultyselectionofcompaniesand,hence,wetrytocarryoutduediligencebefore
investinginthem.
Onportfoliochurn:Purchasingstockswithabuyandholdapproachleadstoalowerchurningoftheportfolioonanaggregatebasis.
Outlookfornext5years:Astheeconomypicksup,weexpectthatthecorporatesectorwillstartdeliveringstrongerearningsgrowth
overthenextfewyears.This,coupledwithlowerinterestratesintheeconomy,shoulddrivesuperiorreturnsfromequityasanassetclass
visavisotherassetsclasses.
Advicefornoviceinvestors:Giventhepositiveoutlookthatwehaveonequityoverthenextthreetofouryears,theretailinvestorscan
incrementallyconsiderahigherallocationtoequities.Theyshouldfollowastrictdisciplineintermsofequityinvestmentandmustavoid

lowqualitytraps.Asthemarketskeeprising,thetendencyistokeepmovingdownthequalitychain.
4)SOHINIANDANI,SBIMUTUALFUND

Brief
Theonlywomanfundmanageronthislist,andoneamongahandfulacrosstheentireindustry,Andanihasemergedasadependable
nameoverthepastfewyears.Deliveringhealthyreturnsinahighlyuncertaineconomicenvironmenthasbeenachallenge,she
acknowledges,butitisonesherelishesasafundmanager.
Withapredominantlygrowthoriented,bottomupstrategy,Andaniprefersassetlightbusinesses,whichprovideanearningsvisibilityofat
least35years,withanabilitytogenerateahealthycashflow,andwherethesizeofopportunityissufficientlylarge.Themanagements
withgoodexecutioncapabilitiesandinclinedtowardscapitalpreservationgethernodofapproval.
Sheisequallyadeptathandlingdifferentfundstrategies,whichreflectsinherfunds'performanceSBIMagnumMidcapandSBI
Bluechiphaveboastedamongthebestriskrewardprofilesintheirrespectivecategoriesoverthepastfewyears.Alsoevidentisher
abilitytohandleperformanceacrossmarketcyclesherfundshavecapturedmoreoftheupsideduringmarketupticksandcontainedthe
downsideduringmarketdownturnsinabettermannerthanthepeers.

QuickBite
Greatestlesson:Preservationofcapitalisveryimportant.
What'sworkedforme:Qualityoutperformance.
InvestmentsIregret:Wockhardt,JMCProjectsandPCJewellers.
Managingrisk:Internaltemplatesdefiningriskparametersareflaggedoffwheneverinbreach.
Onportfoliochurn:Buywitha35yearperspective.
Outlookfornext5years:Positive.
Advicefornoviceinvestors:Investinequitieswithlongerhorizonandchurnless.
5)KENNETHANDRADE,IDFCMUTUALFUND

Brief
Andrade'sdaysasamutualfundmanagerwillsoonbebehindhimasheisonthevergeofexitinghiscurrentpositionofCIOatIDFC
MutualFund.However,wecannotbegrudgehimhisdeservedspotinourrankings,havingemergedasthegoldstandardinthemidcap
stockinvestingarenaforthebetterpartofthepastdecade.
Underhisstewardship,IDFCPremierEquityhasbuiltasolidtrackrecordinthemidandsmallcapsegment,anditisnotsurprisingthat
hemakesthegradeinourranking.Hisknackforspottingfuturegrowthleadersearlyonintheirbusinesscycles,andholdingontothem
asthegrowthstoryplayedout,hasbeenresponsibleforthefund'sstellarlongtermperformance.
Duringhisyearsatthehelm,hehasstuckfirmlytoabottomupresearch,scoutingforqualitybusinessesthathavetheabilitytoscaleup
overaperiodoftime.Hisexitisnotonlyalossforthefundhouse,butthefundindustryasawhole.

QuickBite
Greatestlesson:Extendingmylongtermhorizon.
What'sworkedforme:Abilitytopreemptchangesineconomyandpolarisecapitalinsomesignificanttrends.
Managingrisk:Triedtofocusonbuyingcompaniesthathavelowfinancialleverage.
Onportfoliochurn:Agoodcompanyshouldnevergetsold.
Outlookfornext5years:Equitycandeliveradoubledigitreturn.
Advicefornoviceinvestors:Becomfortableintheassetclassyouinvestin.Ifyoudon'tunderstandit,askquestions.
6)HARSHADPATWARDHAN,JPMORGANMUTUALFUND

Brief
Patwardhanboastsagoodperformancetrackrecord.Hisinvestingstyleisbuiltonthreepillars.First,giventhenatureofoureconomy,he
seeksbusinesseswhichoffersignificantgrowthcompoundingopportunitiesoverlongperiodsoftime.
Second,hebelievesthatstockpricestendtotrackbusinessvaluesoverlongperiods,though,sometimes,thesemoveinawaythatisnot
reflectiveofthevalueadditioninthebusiness.Assuchhedoesnotchasestocksthatmayseemfashionableatthemomentbutarenot
generatingvalueforshareholders.Third,heisprimarilyabottomupstockpicker,whobelievesthatatopdownviewisnecessaryat
times,butisnotsufficient.
Heonlylooksattheaggregatesectoralexposuretoensureheisnotoverexposedtoaparticularsector.Patwardhanfollowsa
benchmarkagnosticstyleofportfolioconstruction,willingtodeviatesubstantiallyfromthebenchmarkinordertogeneratealphafor
investors.Theextentofdiversificationorconcentrationinhisportfolioismoreafunctionofthelevelofconvictionhehasinthebusiness
andeconomyatanygivenpointintime.Hetypicallylookstoholdastockforatleastthreeyears.

QuickBite
Greatestlesson:Itpaystoignorethenoiseandfocusonbusinessfundamentals.
What'sworkedforme:Followingourresearchprocess.
InvestmentsIregret:Investmenthypothesisprovewrongattimes.
Outlookfornext5years:Cyclicalrecoveryandstructuralreformswilldrivetheeconomyandmarketsoverthenextfewyears.
Advicefornoviceinvestors:Workwithfinancialadviserstoformulateassetallocationplan.
7)SAILESHRAJBHAN,RELIANCEMUTUALFUND

Brief
Forthisexperiencedhand,thereisneveradulldayinofficeandthemarketisalwaysripewithopportunitiestoinvest.Managing`14,035
croreofassets,Bhanadoptsapredominantlybottomupapproach,thoughhedoestakethetopdownviewtoidentifypocketswherethere
mightbevalue.
Hescoutsforbusinessesthatprovidesustainablegrowthinprofitabilitybasedonsomecompetitiveedge,buysthemattherightpriceand
holdsthemforthelongterm.
Bhanfocusesnotonlyongeneratingalpha,butalsoretainingitovertheyears.Thatiswhyhestressesonholdingbusinessesforatleast
78years.Hedoesn'tshyawayfromtakingsignificantsectordeviationsbutlimitsaggressiveexposuretothreesectorsatatimeand

maintainsareasonablydiversifiedportfolioofstocks.Heisequallyadeptatmakingthemostofarallyingmarketandcontainingthe
downsideduringadownfall.Bhanconcedesthatgoingagainsttheherdtakesalotofgumptionhoweversoundtherationalebehindthe
bet,therearemultipleopinionsagainstit.Still,hehasprovedovertimethatitcanproveveryrewarding.

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Greatestlesson:Qualityandsustainabilityofbusinessovercheapvaluationshavedisproportionate,longtermpayoffs.
What'sworkedforme:Embracingshorttermmarketvolatility.
Managingrisk:Differentiatingvolatilityfromriskiskey.
Outlookfornext5years:Indianeconomywillaccelerateoverthenextfewyears.
Advicetonoviceinvestors:Focusonlongtermwealthcreationovermomentuminvesting.
8)ANOOPBHASKAR,UTIMUTUALFUND

Brief

Bhaskarlikenshisroleofafundmanagertorunningamarathon.Hisperformanceisreflectiveofthisapproachhisfundshavebeen
steadyanddependableperformersovertheyears,comingoutstrongeroveranentiremarketcycle.
Underhiswatch,barringonecalenderyear,hisfundshavehavealwaysoutperformedthecategorypeers.Theriskrewardprofileofhis
fundsalsotendstobesuperiortomanyofhispeers.
Bhaskar'saim,surprisingly,istosimplyavoidbeinginthebottomquartileintermsoffundperformance.However,thelogicbehindthisis
simple:ifonesucceedsindoingsooveralongertimeperiod,onewillendupbeinginthetopquartile.Besides,hereckonsthataimingfor
thetoppercentileleavesoneequallysusceptibletoafalltothebottompercentileofperformersinanotherperiod.Eventhoughhelaments
thathisjoblimitstheabilitytocontrolhisownfatebeingultimatelyatthemercyofhischosencompanies'actionsBhaskar'sproven
executioncapabilitiesoversomanyyearsshouldbecomfortenoughforinvestorsthattheirmoneyisintherighthands.

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Greatestlesson:Stylesandflavourscomeandgo.Focusonconsistency.
What'sworkedforme:Keepingportfoliobetalow.
InvestmentsIregret:Overlasttwoyears,sellinghasbeentheregret.
Managingrisk:Ensurehigherproportionofportfolioismadeofcompanieswhichrepresenttheinvestmentthoughtprocess.
Onportfoliochurn:Betruthful.
Outlookfornext5years:Domesticeconomicrevivalshouldleadtosustainedmultiyearbullmarket.

Advicefornoviceinvestors:Firstsave,theninvestinfinancialassets.
9)JAYESHSHROFF,SBIMUTUALFUND

Brief
ThedynamicnatureofhischosenprofessioniswhatdrivesShrofftodeliverhisverybest.Hedoesn'tliketobepigeonholedintoa
particularstyleofinvestingandiscomfortablemakinguseofbothgrowthandvalueapproachesinhisportfolio,albeitleaningmore
towardstheformer.
Healsodeploysamixoftopdownandbottomupstrategiesinhisportfolioconstruction,favouringathematicapproachtofund
managementintermsofthechoiceofsectorsbecauseitlendsaggressiontotheportfolio.
Heisattractedtobusinesseswhichexhibitabigchange,whetherintermsofcompetitiveintensity,management,regulationorotherkey
parameters.Healsoprefersbuyingintosectorleadersthathaveadisproportionateshareinthemarket.
Shroffmakesnocompromiseonthequalityofmanagementdrivingthebusinessevenifitmeansforgoingreturnsintheshortterm,or
evenifqualityisavailableonlyatapremium.Headmitsthatresistingthetemptationtogenerateshorttermreturnisachallenge,but
insiststhatitshouldnevercomeatthecostofdilutingthecentralphilosophyofthefund.

QuickBite
Greatestlesson:Donotgetcarriedawaybyshorttermnoise.
InvestmentsIregret:Thereisalonglistofregretsforinvestmentsnotmade.
Managingrisk:Qualityofmanagementisthebiggesthedge.
Onportfoliochurn:Idon'tchurnmyportfoliostoooften.
Outlookfornext5years:Veryoptimistic.
Advicefornoviceinvestors:Thosewhostayinvestedforlongalwaysmakemoremoney.
10)RSRINIVASAN,SBIMUTUALFUND

Brief
Srinivasanbecomesuneasywhenanyofhisfundsclimbstothetopoftheperformancecharts.Thereasonissimple:theattentionit
generatesresultsinasudden,largeflowofmoneytothefund,whichposesaproblemasafundmanager.
However,hecanblamehisowninvestingacumenforthisbecausehisfundsoftenfindthemselvesamongthetabletoppers.Forinstance,
twoofhisfundsSBIMagnumBalancedFundandSBISmallandMidcapFundhavebeenfeaturingamongthetopthreeintheir
respectivecategoriesforthepastthreeyears.
Srinivasanaimsforasustainedtopquartileperformance,wherethereturnsarehealthyandconsistent.Heisquicktodismisshisown
contributiontohisfunds'performanceandcreditshisteamofanalystsforcomingupwithsolidstockideasforthefundsonaregular
basis.Nevertheless,itisclearthatexecutionofthefundstrategyisinthehandsofaverycapablefundmanager.Amildlyconcentrated

portfolioconstructionwithastronggrowthbiasisevidentacrosshisfunds,whichboastasuperiorriskrewardprofilecomparedtopeersin
respectivefundcategories.

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What'sworkedforme:Thequalitybubblehasworkedinourfavour,sohasdiscipline.
InvestmentsIregret:JPVL,Wockhardt,UnitedBank,JSPL,McDowellHoldingsandmanymore.
Managingrisk:Wehaveinternaltemplatesthatdefineriskparameters.Theseareflaggedoffwheneverinbreachanddulycorrected.
Onportfoliochurn:Higherportfoliochurniseitheranindicationofalackofunderstandingonstocksorareflectionofatradingmindset.
Advicefornoviceinvestors:Sticktothedesiredassetallocation.

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