Sadanand Shetty, Vice President & Senior Fund Manager - Equity, Taurus Mutual Fund says that fund managers should cut through street noise. He believes that India’s saving culture, entrepreneurship skills and democratic set up make it the hottest investing destination
What is the most exciting thing about your job?
The most exciting thing is the opportunity to directly interact and cultivate relationships with the brightest people who run companies and those who analyze them. Another interesting thing about my job is that I get to spot macro and micro trends.
Tell us what it feels to be responsible for managing other people’s money.
It is the sense of fiduciary responsibility as custodian of other people’s assets.
If not a fund manager, what would have been?
I would have explored a career in the advertising, marketing and brand building space.
Tell us about your first investment.
My interest in stocks began from 1993. Textile Industry was doing well at that time. I was employed with an investment magazine and I had bought some shares of Hanil Era Textiles. The company is based out of Mumbai. It had a joint venture with a Korean company and had some 100 percent off take agreement through BSE broker. NSE was not present at that time. The stock performed well and I made decent gains in a short span of time.
The whole process of transaction was a nightmarish experience due to lack of transparency and accountability associated with that period. Quick gains instilled a false illusion of my ability to make money in the market that led to subsequent misses. The process of learning is never ending!
What role does luck play in investing?
I don’t believe in luck. A stock fundamental is important besides timing of the market.
What are the qualities that you feel a good fund manager should have?
One of the most important qualities of a manager is the conviction to follow his or her investment strategy. Managers should stick to their knitting regardless of the state of the stock market or their mandate's short-term performance ranking.
Share with us the best advice you have ever received.
Not to get biased on the sector that you are in love with.
If you were allowed to spend a day with someone of your choice who would share his/her wisdom and perspective, who would it be?
Steve Jobs. Thanks to Steve Jobs, Apple has had a transformative impact on virtually every technology and service it has touched. Even if you don't appreciate Apple technology or culture, you have to at least have some respect for the way that Apple and Steve Jobs have influenced the technologies you use and appreciate every day. I believe that Jobs’ greatest achievement as a visionary leader so far was a) getting so many super talented people to continue following him b) getting the employees of Apple to buy into his vision when the company was weeks away from bankruptcy. It’s difficult to imagine any other leader being so compelling that they could do these back-to-back.
Your favorite book.
‘The Long Tail’ by Chris Anderson. The theory of the Long Tail can be boiled down to this: Our culture and economy are increasingly shifting away from a focus on a relatively small number of hits (mainstream products and markets) at the head of the demand curve, and moving toward a huge number of niches in the tail.
How do you unwind?
Read books, watch movies and travel.
Over the next 10 years, the most exciting country to invest in would be? Why?
India because of its unbeatable combination of an entrenched savings culture, favorable demographics, entrepreneurial skills and a democratic setup.
Any advice for budding fund managers
They should be able to cut through the noise and look beyond consensus (street) view. A case in point is the recent collapse in stock prices of one of the largest capital goods company with significant presence in international markets. This particular case was against wishes of consensus.
