The Outperformers 2013

“The biggest mistake is to misallocate capital”

IDFC Mutual Fund CIO Kenneth Andrade on why it’s all about survival of the fittest

Photographs by Soumik Kar

Kenneth Andrade believes in taking regular breaks from the market as it helps him keep the noise out. That is what he chose to do this time as well when the market went south. The 43-year-old chief investment officer, who oversees assets of over ₹39,000 crore at IDFC Mutual Fund, recently resumed work after a 10-day break with his wife and two daughters. Having spent more than two decades in the market, Andrade tells V Keshavdev that he is far from intimidated by volatility. The proof of the pudding: his fund (IDFC Sterling Equity) tops the mid- and small-cap category with 16% CAGR returns over the past five years. Though for FY14, it is down 15%, Andrade is not too worried.If anyone needs further proof: Andrade has gone ahead and launched a new mid-cap fund (IDFC Equity Opportunities) in April this year even as aversion towards mid and small caps crept in. His reasoning: it is a one-time opportunity to go fishing in the mid-cap space.