Portfolio with lower cyclical tilt doing well: Saurabh Mukherjea

In a chat with ET Now, Saurabh Mukherjea, CEO, Institutional Equities, Ambit Capital, shares his view on the recent reports by Ambit Capital.

ET Now: Your Coffee Can portfolio does not have IT names, but does your your Good and Clean portfolio have?

Saurabh Mukherjea: The Good and Clean portfolio has one or two IT stocks. Interesting, the Coffee Can has done spectacularly well. The portfolio is focused on companies which have generated strong ROCs and strong revenue growth over the last 10 years. So, the portfolio is beating the markets, since we published it somewhere four or five months ago. The portfolio includes stocks such as Berger Paints and Asian Paints. It also has HDFC Bank in it. The portfolio is something like 300-400 bps ahead of the BSE 500 index.

We last re-balanced our Good and Clean portfolio on February 23 and we cut back the amount of cyclicals. We went equal weight on cyclicals for the first time in three-four years. The portfolio is outperforming the market, but only by 100 bps. So the Coffee Can portfolio, which has a much less cyclical tilt to it, is doing much better than Good and Clean.