Fund Manager Trail

SANDIP SABARWAL
Assistant Vice President and Fund Manager Equities, SBI Mutual Fund

Been with SBI Mutual Fund: Since 1995

Investment Style: Growth plus value

Average holding period: Buys with a 6-12 month perspective, but can sell sooner or hold over longer

Best Investment: Mahindra & Mahindra in early 2003 at Rs 90 levels. Got a 400 per cent return over a 18 month holding period

Worst call: Not a particular stock but the tech sector. Unable to sell at the right time which caused funds to under-perform in the year 2000.

He likes: The capital goods sector, cement, automobiles and to a certain extent technology

“I try to evaluate a company based on its competitive positioning, and the growth potential of the business or businesses in which it operates. The available market place for its goods or services, the pricing power and sustainable profit levels of the company in the medium term, earnings visibility and its return ratios. Currently I think that the capital goods sector has the clearest earnings visibility over the next three years in this country. The main reason for this being that most of the industries are now operating at high utilisation levels plus there is a focus on infrastructure. This will drive the order books and earnings growth of engineering companies”