I would not call myself bearish, I am just not bullish right now: Siddharth Vora

“In the multi-asset dynamic portfolio which is our quant-based asset allocation PMS, we are more overweight on gold, liquid and short duration bonds versus equities itself,” says Siddharth Vora, Fund Manager & Head Quant Investment Strategies – PMS, Prabhudas Lilladher.

How are you approaching this market, what is your investment strategy?
Currently the way we have been building our portfolio and navigating this cycle is focussing a little more on growth visibility and relatively acceptable valuations but on companies with extremely high quality or no compromise on quality but which are making sure that near term growth visibility and valuations are not going to come and bite us as we go along.

I believe we are seeing a relief rally or pullback rally and the US markets have also stabilised quite a bit over the last couple of days and Indian markets will also react similarly at least for a very short duration. That is from the equity perspective and in terms of the asset allocation strategy that we are running, we are underweight on equities for quite a while. We are at 42%; we will bring that down probably to 35-36% if we cross 17,500 levels and that is the way we are currently positioned.

Let me put it this way, you are bearish on the market. If you are sitting on 60% cash and if you plan to take it to 65%m then you fear that markets will head lower?
We are not sitting on 60% cash. In the multi-asset

which is our quant-based asset allocation PMS, we are more overweight on gold, liquid and short duration bonds versus equities itself. The way we look at that portfolio is like through a construct of meters. Each of the meters are not giving a very healthy sign and so I would not call myself bearish, I am just not bullish right now. That is a better way to interpret it.

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