Abakkus Mutual Fund Reshuffles Holdings as Vedanta Entities List Out, Boosting Exposure in Key Sectors

Abakkus Mutual Fund Reshuffles Holdings as Vedanta Entities List Out, Boosting Exposure in Key Sectors​

Portfolio disclosures from Sunil Singhania-backed Abakkus Mutual Funds reveal significant shifts following the demerger of the Vedanta conglomerate. The breakup resulted in four new listed entities: Vedanta Aluminium Metal Ltd, Vedanta Oil & Gas Ltd, Vedanta Power Ltd, and Vedanta Iron & Steel Ltd, which all debuted on stock exchanges on June 15.

The changes reflect a strategic reallocation as the funds navigate this corporate transition. Abakkus’s Flexi Cap Fund and Small Cap Fund both made exits from several of the conglomerate’s entities while simultaneously increasing their stake in the newly separated Vedanta Aluminium entity.

Navigating the Vedanta Group Reshuffle​

Both the Rs 5,301-crore Abakkus Flexicap Fund and the Rs 1,494-crore Abakkus Small Cap Fund exited holdings related to the demerged businesses. Specifically, both schemes sold 16 lakh shares of Vedanta, Malco Energy, and Vedanta Iron & Steel during June.

The FlexiCap Fund also shed its holding in Fractal Analytics (1.7 lakh shares). These exits mark a clear response to the corporate restructuring within the vast conglomerate structure.

Despite these sales, both funds significantly increased their exposure to Vedanta Aluminium. The Flexicap Fund purchased 9.5 lakh shares of Vedanta Aluminium, while the Small Cap Fund added 3.5 lakh shares during the month.

Strategic Bets in Small Cap Fund​

The Abakkus Small Cap Fund initiated two key fresh positions in specialized consumer businesses: Saregama India and Kewal Kiran Clothing. These new additions accounted for 1.5 percent and 0.5 percent of the portfolio, respectively.

The fund also strengthened its position across 53 existing holdings. Key purchases included 48.5 lakh shares of Talwandi Sabo Power and 3.5 lakh shares of Vedanta Aluminium. The Small Cap Fund continued to hold significant exposure in banks and industrial companies like HDFC Bank and State Bank of India.

Top sector allocations for the Small Cap Fund highlighted Industrial Products at 9.5 percent. Banks stood strong at 8.9 percent, followed by Pharmaceuticals & Biotechnology (8.7 percent) and Auto Components (6.5 percent).

Flexicap Fund Focuses on Financial Giants​

The Abakkus FlexiCap Fund did not introduce any fresh additions in June but instead concentrated on deepening its stake in 28 existing companies. This scheme saw substantial increases in exposure to several blue-chip entities.

Among the largest additions, the Flexicap Fund purchased a massive 1.2 crore shares of Talwandi Sabo Power and 9.5 lakh shares of Vedanta Aluminium. The fund also increased its holding in banks, adding 10.5 lakh shares of HDFC Bank and 4.2 lakh shares of State Bank of India.

The sector allocation for the Flexicap Fund was dominated by Banks at 20.1 percent. Other strong areas included Pharmaceuticals & Biotechnology (7.3 percent), Electrical Equipment (5.4 percent), Capital Markets (4.7 percent) and Finance (4.6 percent).

Performance Metrics and Asset Allocation​

Both funds maintained a high level of commitment toward growth, with the Flexicap Fund having 93.3 percent of its assets in equities at the end of June. The Small Cap Fund had 88.8 percent invested in equities.

The performance data shows both schemes delivered solid returns across various time horizons. The Small Cap Fund recorded a one-month return of 8.07 percent, while over three months since launch it posted 21.68 percent.

Meanwhile, the Flexicap Fund returned 6.30 percent in one month. Its long-term performance includes achieving 17.57 percent over three months and a strong 10.28 percent on a year-to-date basis.