What MFs did in September

[roadtrippin69]

Really sorry I could not do this post last month, since I was slightly busy with the investment tracking app that I was working on (r/Artos). Here's the post for this month.

Companies MFs love the most.

This is computed as the weighted average of the AUM allocation for the company for the mutual funds that hold it.

1. HDFC Bank (7.1%)
2. Gillette India Ltd. (6.14%)
3. ICICI Bank Ltd. (6.09%)
4. Reliance Industries Ltd. (5.54%)
5. Infosys Ltd. (4.63%)
6. HDFC (4.1%)
7. LT (3.89%)
8. Kotak Mahindra Bank (3.8%)
9. Glaxosmithkline Pharmaceuticals Ltd. (3.55%)
10. ITC (3.53%)

Notes:

1. This is the first time I've seen HDFC Bank hit 7%.
2. SBI is out of the list.

Companies MFs bought the most.

This is computed as the % change in the number of shares held by all MFs.

1. ICICI Lombard General Insurance Co Ltd. (102.03%)
2. 3M India Ltd. (46.88%)
3. Lemon Tree Hotels Ltd. (42.05%)
4. Zee Entertainment Enterprises Ltd. (42.01%)
5. Avanti Feeds Ltd. (34.87%)

Companies MFs dumped the most.

This is computed as the % change in the number of shares held by all MFs.

1. Indiabulls Housing Finance Ltd. (-72.26%)
2. Bombay Burmah Trading Corporation Ltd. (-61.08%)
3. Ujjivan Financial Services Ltd. (-31.38%)
4. Indian Energy Exchange Ltd. (-25.09%)
5. L&T Finance Holdings Ltd. (-20.58%)

Companies most MFs increased the stake in.

This is computed as the net funds that increase the stake in the company to the total fund holding the company.

1. Glaxosmithkline Pharmaceuticals Ltd. (84.62%)
2. 3M India Ltd. (77.14%)
3. Lemon Tree Hotels Ltd. (73.91%)
4. Heidelberg Cement India Ltd. (72.09%)
5. REC Ltd. (71.43%)

Companies most MFs decreased the stake in.

This is computed as the net funds that increase the stake in the company to the total fund holding the company.

1. Indiabulls Housing Finance Ltd. (-77.48%)
2. Ujjivan Financial Services Ltd. (-59.26%)
3. Adani Ports and Special Economic Zone Ltd. (-57.14%)
4. Steel Authority Of India Ltd. (-52.5%)
5. Redington (India) Ltd. (-47.37%)

Comment your thoughts about these companies, if there are any you are looking into, or the ones that you dumped.

About the data:

1. The data is over around 575 companies.
2. Companies that are held by less than 10 funds have been excluded.
3. The funds include ETFs, and arbitrage funds.

 

[samoisus]

@roadtrippin69 The growth of HDFC Bank and the kind of huge exposure that Mutual Funds have towards HDFC Bank terrifies me. Yes, the bank has delivered well, but just think of what will happen if we discover hidden skeletons. Don't forget that in almost all cases such as IL&FS, DHFL, Satyam etc., public was unaware of the risks and every single rating agency and auditor chose to ignore those risks till the very end.

I hope everything is well with HDFC Bank, but it's too big to fail. It has the potential to crash our economy if anything goes wrong.

 

[roadtrippin69]

@samoisus That's what I'm afraid of. Every mutual fund I hold has exposure to it. Heck, I even have direct exposure to it, albeit very small. But, the way it delivers 20% growth like clockwork, there's massive FOMO in the industry.

 

[derek1111]

@roadtrippin69 Contrarian EPS on Twitter has called out the almost suspiciously consistent 20-25% growth QoQ that HDFC bank has displayed. Not saying there's anything there, it's just odd.

 

[altailji]

@samoisus Indeed. It’s like the Lehman Brothers of India. If it collapses, the entire country’s financial system would collapse.

 

[fromgenesistorevelation]

@samoisus HDFC certainly is going to tank the market some day and it need not be even any skeletons in the closet. Too much of concentration risk in that stock.

 

[erikallan]

@roadtrippin69 I didn't check which subreddit this was and just read the title and was like, 'what these MotherFuckers do?'