After large-cap switch, Quant MF's Sandeep Tandon adds small-caps

The veteran uses Quant's VLRT model, focusing on valuation, liquidity and risk appetite to drive investments

- Jash Kriplani

Sandeep Tandon, founder and chief investment officer of Quant Mutual Fund, has started seeing opportunities in small caps even as he stays cautious about mid-caps, about 10 months after his asset management company moved towards large-caps amid 'risk-off' conditions.

"We see a minor risk-on environment now," said Tandon, whose firm manages nearly ₹190,000 crore in investor assets. Quant Small Cap Fund is the largest scheme for the fund house with assets of around ₹26,000 crore. His own equity portfolio has 60% exposure to large-caps, 15% to mid-caps and 25% to small-caps, Tandon said in an interaction with Mint on 'Guru Portfolio', a series where leaders from the financial services industry share how they manage their money.

Asset mix

Tandon, who is bullish on small-caps for the long term, has allocated more towards large-caps over the past year. He moved out of mid- and small-caps around July last year as Quant's data-driven investment model signaled a risk-off period.