Why WhiteOak Mid Cap Fund Is Standing Out In India’s Mid Cap Mutual Fund Space

[00:00:00]Uh, now let's come back to the start of the show, which is the mid-cap fund.

[00:00:04]Ladies and gentlemen, uh WhiteOak Mid Cap is about three, three and a half years old and has done some phenomenal work over the last uh uh 36 months or so. Very strong return parentage, very strong portfolio, and uh uh a fund uh portfolio that's done phenomenally well over the last uh three odd months or so. Uh Ashish ji, the thought process of uh what WhiteOak Mid Capital Fund could be over the next 2 years or so.

[00:00:42]>> Yes, so Shalini, actually see, I think the you know, very kind of you to acknowledge. I think the reason why uh you know, so the fund has got a good start in the last three, three and a half years, rated highly. The reason is I think that uh see, what happens when people look at performance, obviously they're looking at performance related to the benchmark, which is the alpha, and then people are looking at performance versus peers.

[00:01:05]Now, what you will notice, one of the things is that there is a this winner rotation phenomenon. So, in 1 year, you will find somebody beating the index by a mile, and a year or two later, they are well behind the index. Sometimes somebody is not only top quarter, they're number one, you look them down road 2 years, they're number 20 or number 24.

[00:01:23]I think why uh this fund has done well is because it has never, you know, it's not uh it's not aggressively or starkly positioned away from the market or the uh peers in that sense.

[00:01:35]>> Mhm.

[00:01:36]>> So, follow something called balanced portfolio construction.

[00:01:39]>> Mhm.

[00:01:39]>> So, what that the fund has a active weight of 60%, which means 60% of the portfolio is active when compared to the BSE 150 index. So, portfolio is active. It is generating alpha from stock selection.

[00:01:52]But, when you look at sect- sectors when you look at factors like growth, value, large, mid, small, right? So, when you get sectors and factors and you look at style, it is synchronized with the benchmark.

[00:02:07]Which means that if you take sector bets, the allocation that we have versus the benchmark is not very disjointed from the benchmark. If you look at growth versus value, quality versus all those factors, it is not disjointed. It is synchronized with the benchmark. If you look at beta of the portfolio, it's synchronized close to the benchmark.

[00:02:27]So, what what happens is that we are not seeing wild swings in alpha. We are not seeing wild swings in performance. We are seeing consistency.

[00:02:35]And the alpha is generated bottom-up from stock selection, not by betting on any sector, factor, or anything.

[00:02:40]So, that is actually what is bringing consistency to the performance.

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