Expert's Insights On Stock-Specific Investing Strategy In A Corrected Market

Where are top investment managers deploying their fresh capital amid significant market corrections? In this excerpt from Business Today TV's "Market Guru," Sandip Bansal, Deputy CIO, ASK Investment Managers, shares his firm's strategic approach. With the Nifty experiencing a 17-18% correction and mid-caps and small-caps taking a substantial hit, ASK Investment Managers are focusing on bottom-up business characteristics rather than market capitalization. They prioritize earnings, cash flows, growth, robustness, and return on capital, believing that solid businesses with consistent earnings delivery will outperform regardless of market cap. While acknowledging that mid-caps and small-caps have seen more severe corrections, creating pockets of attractive valuations, they emphasize a stock-specific approach. Large-caps, as a basket, are considered more attractively valued currently, and ASK's AUM is predominantly deployed in them. However, their incremental money deployment will continue to be driven by rigorous bottom-up analysis, identifying strong businesses irrespective of their market cap classification. This strategy reflects a focus on fundamental strength and long-term value creation, ensuring that investments are made in companies with solid foundations and growth potential.