Sohum Asset Managers, a Mumbai-based fund, is deliberately underweighting FMCG stocks as part of a broader pivot toward largecap safety and domestic strength. Founder and Chief Investment Officer Sanjay H Parekh said the fund is avoiding the sector despite acknowledging that companies like Nestlé and HUL have delivered ahead of expectations. His concern is not consumer demand but valuation: he believes current prices are uncomfortable relative to the sustainable growth prospects of FMCG names.
The move reflects a tactical repositioning across the fund's portfolio. Sohum has increased its largecap allocation to 82 percent from 72 to 73 percent in February, a shift completed through March, April, and early May in response to global macro headwinds and mounting pressure on mid and smallcap stocks. The fund is instead accessing consumption through discretionary retail, telecom, and real estate exposure, which Parekh views as better value propositions in the current environment.
The fund holds a diverse domestic basket, with private sector banks (SBI, ICICI Bank, Axis Bank, and HDFC Bank) accounting for 26 to 27 percent of the portfolio, alongside significant positions in Reliance Industries and infrastructure names. Over nearly four years, the fund has compounded returns at 18 percent annually.