Quant Small Cap Mutual Fund has released its portfolio update for August 2025, giving investors and market watchers a detailed look at its latest stock positions and strategy shifts. The fund has seen a challenging performance recently, with its Net Asset Value (NAV) down by 10.38% on a year-on-year basis. Additionally, the fund’s Assets Under Management (AUM) declined by more than ₹705 crore month-on-month, reflecting both market conditions and portfolio adjustments.

At the top of the fund’s allocations, the three largest holdings remain Reliance Industries, Jio Financial Services, and RBL Bank, underscoring the consistent confidence of the fund managers in these heavyweight positions. In addition to equities, the fund has also increased its futures exposure, adding an additional 0.12% long position in NCC, highlighting a tactical bullish stance.

Cash Holding Trends

Cash allocation has seen notable fluctuations over the past three months. The fund held 3.96% of its assets in cash in June, which reduced slightly to 2.95% in July. However, in August, cash holdings surged to 6.35%. This sharp increase signals a defensive approach, allowing the fund managers to remain flexible amid ongoing market volatility.

Major Shareholding Changes from July to August

The fund made significant portfolio adjustments in August, with a mix of profit booking, partial exits, and selective accumulation across multiple companies. Here’s a detailed breakdown of shareholding changes:

• Bikaji Foods International Limited: Holding reduced from 1,12,53,822 shares in July to 1,02,35,789 shares in August, a decline of 9.05%. Current weight in AUM stands at 2.81%.

• Aster DM Healthcare Limited: Slight increase from 1,06,31,990 shares in July to 1,08,83,493 shares in August, up by 2.27%. AUM allocation is 2.27%.

• Gland Pharma Limited: One of the biggest changes, as holdings increased sharply from 6,21,279 shares in July to 13,76,279 shares in August, up by 121.52%. Allocation is now 0.90% of AUM.

• One Source Specialty Pharma Ltd: Reduced from 11,30,410 shares to 10,32,127 shares, down by 8.69%. Allocation at 0.68%.

• Anupam Rasayan India Limited: Cut down from 17,97,477 shares to 16,62,039 shares, a decline of 7.53%. AUM allocation at 0.59%.

• India Shelter Finance Corporation Ltd: Reduced significantly from 21,36,297 shares in July to 14,80,836 shares in August, a 30.68% cut. AUM weight at 0.54%.

• Aditya Birla Fashion and Retail Ltd: A major trim, with holdings falling from 3,22,12,218 shares to 1,80,82,269 shares, a reduction of 43.87%. AUM allocation stands at 0.49%.

• Jana Small Finance Bank Ltd: Lowered from 2,49,12,222 shares to 2,23,24,248 shares, down by 10.39%. Current AUM allocation 0.39%.

• Taj GVK Hotels & Resorts Limited: Holding reduced from 9,16,694 shares to 5,62,008 shares, a fall of 38.69%. AUM allocation at 0.08%.

• Ethos Limited: Increased stake from 71,898 shares to 87,898 shares, up by 22.25%. AUM weight at 0.07%.

• HP Adhesives Limited: Reduced from 4,68,996 shares in July to 2,82,579 shares in August, a decline of 39.75%. Allocation at 0.03%.

• Siemens Energy India Limited: Complete exit from the earlier holding of 7,20,000 shares, marking a 100% reduction.

• PG Electroplast Limited: Another complete exit, cutting down from 14,06,452 shares in July to zero in August, a 100% reduction.

Interpretation of the Strategy

The data shows that the fund managers at Quant Small Cap are actively managing risk in an uncertain market. Large reductions were seen in consumer-facing names like Aditya Birla Fashion, India Shelter Finance, and Taj GVK Hotels, while Gland Pharma was aggressively accumulated, suggesting selective confidence in sectors like healthcare and pharma.

The increase in cash holding to 6.35% reflects caution, providing a buffer for volatility and liquidity for future opportunities. The exits from Siemens Energy India Limited and PG Electroplast Limited underline the fund’s approach to pruning underperforming or less conviction bets.

Conclusion

Quant Small Cap Mutual Fund’s August 2025 portfolio reflects a balance between caution and select conviction. With AUM down by ₹705 crore and NAV slipping by 10.38% YoY, the managers are clearly positioning the fund defensively while still seeking growth in selective sectors such as healthcare. Investors tracking the fund should note the sharp increase in cash allocation and major reshuffling of small and mid-cap holdings, which could define the fund’s near-term performance trajectory.