Nifty 17469.75 (1.71%)
Sensex 58649.68 (1.76%)
Nifty Bank 37284.7 (1.82%)
Nifty IT 35959.05 (1.95%)
Nifty Financial Services 18284.95 (1.70%)
Adani Ports 761.40 (2.24%)
Asian Paints 3108.50 (2.58%)
Axis Bank 697.10 (1.47%)
B P C L 391.15 (0.86%)
Bajaj Auto 3332.05 (1.39%)
Bajaj Finance 7361.50 (3.64%)
Bajaj Finserv 17621.65 (3.00%)
Bharti Airtel 715.15 (2.33%)
Britannia Inds. 3575.75 (2.92%)
Cipla 897.95 (0.98%)
Coal India 150.90 (0.17%)
Divis Lab. 4604.95 (-0.43%)
Dr Reddys Labs 4570.70 (1.11%)
Eicher Motors 2505.55 (1.37%)
Grasim Inds 1716.25 (1.82%)
H D F C 2853.00 (1.26%)
HCL Technologies 1171.60 (1.91%)
HDFC Bank 1553.80 (1.84%)
HDFC Life Insur. 686.40 (-1.15%)
Hero Motocorp 2490.65 (1.17%)
Hind. Unilever 2340.60 (0.82%)
Hindalco Inds. 457.45 (3.38%)
I O C L 120.40 (-0.17%)
ICICI Bank 753.40 (2.55%)
IndusInd Bank 945.30 (2.01%)
Infosys 1753.35 (2.44%)
ITC 224.95 (1.95%)
JSW Steel 672.95 (1.86%)
Kotak Mah. Bank 1920.45 (-0.86%)
Larsen & Toubro 1825.05 (1.50%)
M & M 840.75 (1.79%)
Maruti Suzuki 7434.90 (3.46%)
Nestle India 19479.10 (0.70%)
NTPC 127.25 (1.52%)
O N G C 148.40 (1.71%)
Power Grid Corpn 204.80 (-0.49%)
Reliance Industr 2418.10 (1.52%)
SBI Life Insuran 1169.50 (0.89%)
Shree Cement 26106.90 (1.40%)
St Bk of India 491.55 (3.12%)
Sun Pharma.Inds. 757.55 (1.86%)
Tata Consumer 772.15 (1.51%)
Tata Motors 493.90 (2.51%)
Tata Steel 1173.00 (2.11%)
TCS 3626.90 (1.18%)
Tech Mahindra 1604.80 (1.79%)
Titan Company 2405.55 (1.05%)
UltraTech Cem. 7423.95 (1.71%)
UPL 728.10 (0.16%)
Wipro 641.70 (1.47%)
Kenneth Andrade: Analyzing the stock-picking strategy and philosophy of this market expert
by 5paisa Research Team 11/11/2021

Andrade has a disciplined approach and the ability to nurture a stock and allow it to grow - a rare ability in fund managers.

Kenneth Andrade is currently the CIO of Old Bridge Capital Management, an India-based registered PMS. He manages the investment process and leads investment ideation. Along with over 27 years of experience in Indian Capital Markets, he has a published track record of managing Mutual Fund schemes for the last 13 years.

His experience in portfolio management includes the 10 years at IDFC Asset Management Company, which was ranked amongst the top 8 in the Mutual Fund industry in India, the Year 2005 - 2015.

Before he moved to IDFC, Andrade was managing the Kotak MNC and Kotak Midcap Fund of the Kotak Mahindra Group.

Coming to his investment style, Kenneth Andrade follows a simple thumb rule of investing and is known to have a disciplined approach while planning his portfolio. When he enters a new space, he likes to invest in all the leading stocks in that space and then keeps a watch on the performance of these companies. He uses the data put out by all companies in the sector to decide and evaluate how he will fine-tune his holdings. After it becomes clear which company are likely to race ahead, Andrade gradually moves out of other stocks and focuses entirely on that company.

When it comes to cyclical industries, Kenneth Andrade believes that smart capital allocation can make all the difference when it comes to a successful company and an also-ran company. He believes that debt is an albatross on a companies growth margin and so, irrespective of market capitalization, he chooses debt-free companies. Finally, he is not hesitant about paying a premium for companies that operate as virtual monopolies and has a strong fondness for such companies.

In his words, “Equities are all about buying efficient capital delivered by underlying business.” And so, Andrade looks for companies that respect capital. A good example is Shree Renuka Sugars. In 2006, the company had a market capitalization of Rs 3600 crore as compared to the then market leader – Bajaj Hindusthan at Rs 7,058 crore. The promoters of Renuka Sugars were baffled by the higher market capitalisation of Bajaj Hindusthan and felt that they should be on par as Renuka Sugars was strong on all financial parameters.

Most investors made a beeline for Bajaj Hindusthan. But not Andrade. He liked Renuka Sugars because it had set up capacities at low costs and had a scalable model for bigger capacities at half the capital cost. This idea came to fruition after the sugar industry hit a low point in 2009. Bajaj Hindusthan borrowed heavily to survive, it was saddled with Rs 4,500 crore debt and its market capitalization fell to Rs 1,500 crore. However, Renuka Sugars emerged from the downcycle with a market capitalization of Rs. 4,000 crore.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

There is some issue, try later