Quant Mutual Fund (MF) has reportedly sold all of its holdings in HDFC Bank, months after making a significant investment in the country’s largest private lender.
Previously a top holding in many of its schemes at the end of June, HDFC Bank no longer appears in the top 10 holdings of any Quant MF scheme. Quant MF has gained prominence in recent years for its successful high-conviction bets, including a notable investment in Adani stocks in 2022. Following the Hindenburg report on Adani shares in early 2023, the fund house shifted its focus to Reliance Industries and Jio Financial, which significantly contributed to its performance over the past year.
Despite its strong past performance, Quant MF has faced challenges recently, including an investigation by the regulator into potential front-running activities. Although HDFC Bank has a significant presence in large-cap, banking, and financial services indices due to its market capitalization and free float, Quant MF has maintained minimal exposure to the bank, except for a brief period between May and July.
HDFC Bank, despite its attractive valuation, has struggled to deliver returns and its anticipated performance boost from an increased weight in the MSCI index did not materialize as expected.
