Mumbai-based Sohum Asset Managers has made a decisive shift toward largecap safety as global macro headwinds intensify. According to reports from The Economic Times, the fund's largecap allocation has increased to 82% from the minimum 70% mandate, up from 72-73% in February. This strategic repositioning occurred through March, April, and early May as the fund responded to a more uncertain global environment. The overarching theme remains domestic overweight, global underweight, with India-facing businesses proving more resilient than export-oriented or globally exposed names amid ongoing geopolitical tensions. As per ET Now, this stance has directly benefited fund performance, with the fund compounding returns at 18% annually over nearly four years - a track record Parekh attributes to disciplined GARP investing and a portfolio concentrated in 15-20 high-conviction names.
As reported by The Economic Times, Sohum Asset Managers has identified Reliance Industries as one of its most significant recent additions, with purchases made around the ₹1,350–1,360 level. The fund's sum-of-the-parts valuation puts the stock's fair value at ₹1,660–1,670 by FY28, representing compelling upside for the country's largest listed company. The investment case rests on multiple pillars including a base refining and petrochemical EBITDA of around ₹60,000 crore, strong oil and gas EBITDA of ₹16,000–17,000 crore, a well-performing telecom business, and a retail segment finding its footing. Beyond existing businesses, the fund is particularly excited about Reliance's new energy play, described as a fully integrated renewable energy platform spanning solar, battery storage, and specialised chemicals. According to ET Now, Parekh believes this new energy play will become a meaningful contributor to earnings by FY28-30, further enhancing the investment case.
According to The Economic Times, the fund holds a basket of India's four largest banks — SBI, ICICI Bank, Axis Bank, and HDFC Bank — together accounting for 26-27% of the portfolio. The fund's conviction in this banking basket is grounded in valuation and balance sheet quality, with all four banks trading at significant discounts to their five-year averages and carrying excess provisions. Parekh believes interest rates have bottomed out, and in a rising rate environment with loan growth recovering toward 15-16%, he expects net interest income growth to outpace loan growth over the next one to two years. As reported by ET Now, all four banks are showing improving asset quality, with the banking basket positioned to benefit directly from this improving dynamic. The fund's 26% portfolio allocation to private sector banks reflects this strategic focus on financial sector opportunities.
As reported by The Economic Times, beyond financials and Reliance, the portfolio reflects a broader domestic consumption and infrastructure thesis. The fund holds Maruti and Mahindra in the auto space, citing strong April volume numbers, along with auto ancillary firm Samvardhana Motherson. In cement, Ambuja and Grasim — which gives indirect exposure to UltraTech — are the preferred names, with the view that larger players will consolidate market share despite current overcapacity. The telecom play is represented by Bharti Airtel, while Larsen and Toubro and niche prefab company Interarch round out the capital goods exposure. Adani Ports completes the portfolio's infrastructure tilt, providing comprehensive exposure across key sectors. According to ET Now, Parekh's approach involves maintaining a concentrated portfolio of 15-20 high-conviction names, with the fund accessing consumption through discretionary, telecom, and real estate exposure rather than direct FMCG exposure.
Despite positive consumer sentiment data, Sohum Asset Managers remains cautious on FMCG, as reported by The Economic Times. While acknowledging that companies like Nestle and HUL have delivered ahead of expectations, the fund believes valuations remain uncomfortable relative to sustainable growth prospects. Instead of direct FMCG exposure, the fund is accessing consumption through discretionary, telecom, and real estate exposure, maintaining its focus on sectors with better growth prospects and reasonable valuations in the current market environment. According to ET Now, this cautious stance on FMCG reflects the fund's disciplined approach to valuation, with the fund preferring sectors that offer more attractive risk-reward profiles in the current market conditions.
