Helios Flexi Cap Fund, managed by renowned investor Samir Arora, has released its February portfolio update, revealing significant changes in its stock holdings. The fund has made strategic sectoral shifts, notably reducing exposure to IT stocks while increasing positions in financial and industrial sectors. Another key takeaway is the sharp rise in cash holdings from 1.7% in January to 20.6% in February, indicating a cautious stance on market conditions.
Key Highlights of the Portfolio Update
1. Top Holdings: HDFC, ICICI & Zomato
The fund's top three holdings include:
ICICI Bank Ltd. – 5.9% of AUM (7.69% increase in holding)
HDFC Bank Ltd. (Not listed in the image but a known major holding)
Zomato Ltd. – 5.13% of AUM (20.36% increase in holding)
These companies continue to be strong bets for the fund, particularly ICICI Bank, which remains its highest holding.
2. Increased Stake in Key Stocks
The fund added or increased its stake in several stocks, signaling bullish sentiment:
The biggest additions have been in financials, real estate, and industrial sectors, showing the fund's preference for domestic growth-oriented stocks.
3. Reduced or Completely Exited Stakes
On the flip side, the fund cut or completely exited multiple stocks, particularly in the IT sector:
Complete Exits (-100% Holding Reduction):
Swiggy Ltd. (Exited completely)
Tata Consultancy Services Ltd. (TCS)
Coforge Ltd.
Infosys Ltd.
HCL Technologies Ltd.
PB Fintech Ltd.
Hindustan Aeronautics Ltd.
Piramal Pharma Ltd.
Zaggle Prepaid Ocean Services Ltd.
The Indian Hotels Company Ltd.
Ganesha Ecosphere Ltd.
S H Kelkar and Company Ltd. (-53.81% reduction)
KPIT Technologies Ltd. (-14.93% reduction)
The most notable exits were from Swiggy and IT stocks, with TCS, Infosys, Coforge, and HCL Tech being completely offloaded. This indicates a bearish outlook on the IT sector, likely due to concerns over global demand slowdowns or valuation concerns.
4. Surge in Cash Holding
The fund’s cash reserves shot up from 1.7% to 20.6%, which is a drastic increase. This suggests that Helios Flexi Cap is taking a cautious approach, possibly waiting for better market entry points or hedging against volatility.
Helios Flexi Cap Fund’s February update reflects a sectoral shift from IT to financials, alongside an increase in cash holdings. The fund appears to be positioning itself for potential corrections or new investment opportunities. Investors should track these moves closely to gain insights into market trends.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.