$1-billion HNI portfolio manager enters mutual fund business; launches multi-cap fund for small investors

Well-known equity investor and portfolio manager Kenneth Andrade on Wednesday launched Old Bridge Mutual Fund. At the same time, the country’s newest fund house also introduced its maiden equity new fund offer (NFO) Old Bridge Focused Equity Fund. The open-ended equity scheme will invest in a maximum of 30 stocks. 

At present, Andrade’s Old Bridge Capital Management, which he founded in 2016, handles assets worth $1 billion. It manages money for clients who include large financial planning groups, family offices, high-net-worth individuals and offshore institutional clients. Therefore, the Old Bridge Focused Equity Fund will give an opportunity to retail investors which will be managed by the seasoned investment professional Andrade himself and Tarang Agrawal. 

The NFO will open for subscription from January 17 to 19. Investors can participate with a minimum SIP investment of Rs 2,500 and in multiples of Rs 1 thereafter. For lump-sum investments, the minimum amount is Rs 5,000.  

The scheme will be benchmarked against the S&P BSE 500 TRI. 

While sharing his investing strategy, Kenneth Andrade, CIO, Old Bridge Asset Management and Founder Director, Old Bridge Capital Management said the fund’s strategy is aligned with our investment philosophy focusing on early-cycle businesses with strong leadership and growth potential. 

The fund's objective is to achieve long-term capital appreciation by strategically investing in a maximum of 30 stocks across different market capitalisations (mid cap, small cap, large cap). According to Old Bridge Mutual Fund, this multi-cap approach is designed to identify businesses with the potential to compound capital over the long term, focusing on companies with enduring economic moats that have long-term franchise value and continued growth potential. 

Andrade also said that the launch of the Old Bridge Focused Equity Fund aligns with the unprecedented growth in India’s mutual funds industry as highlighted by recent data from the industry trade body AMFI. With over 20 million new investment accounts and a 19 per cent increase in fund assets during the first 11 months of 2023, India surpasses global peers like the US, Japan, and China. 

In the past decade, the Indian mutual fund industry has experienced a robust growth of over six times, surging from around Rs 8 lakh crore in 2013 to an impressive Rs 50.8 lakh crore by the end of 2023, as per data released by AMFI.